Markets sometimes fail, but regulatory efforts to correct market failures often make the problem worse. The best regulation maximizes the public good and minimizes public costs. Like a physician, policymakers should diagnose the underlying disease and identify its symptoms and potential remedies before selecting the regulation that offers the greatest net benefit.
Thomas A. Lambert is the Wall Chair in Corporate Law and Governance at the University of Missouri. He has authored more than 20 journal articles in such publications as the Antitrust Bulletin, the Boston College Law Review, and the Yale Journal on Regulation. He has received the law school's Blackwell Sanders Peper Martin Distinguished Faculty Achievement Award for teaching excellence and the university-wide Gold Chalk Award for Excellence in Teaching at the graduate level.