Abstract
What has been our experience with industry self-regulation—the setting of standards, the policing of deceptive practices, and the grading of products by industry groups in the absence of federal or state regulation? What are its implications for effective public policy? The author reviews a number of examples of industry self-regulation, presents a simple classification scheme to help evaluate the social desirability of the practices that result, and concludes by suggesting that mixed systems combining industry standard setting with government oversight may be the most desirable policy option.
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