Network Effects and Regulatory Competition: An Introduction to the Expectations and Challenges of Partnership Law Reform
TILEC Discussion Paper No. 2005-028
32 Pages Posted: 22 Oct 2005
Date Written: October 2005
Abstract
This article examines the theoretical arguments for and against the importance of new partnership-type business forms. Section 1 briefly reviews the history of partnership law reform in Europe. The review of traditional partnership law reveals that the absence of new business forms may be due to status quo bias and network effects. Section 2 turns to the importance of partnership law reform and the introduction of new business forms to a robust economy. Section 3 evaluates whether we can project a pattern of regulatory competition in the business organization law context that could prompt lawmakers to innovate by introducing new partnership-type business forms.
Keywords: Network effects, Regulatory competition
JEL Classification: K20, K22, G38
Suggested Citation: Suggested Citation