
Will Regulations Kill The Sharing Economy? - iProject
http://techcrunch.com/2012/11/04/will-regulations-kill-the-sharing-economy/
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bediger4000
So are we to conclude that piles of regulations end up helping the incumbent?
That regulation is just a form of mercantilism, or some other discredited
economic theory?

A few months ago, I heard a story about Kosher food production on NPR
([http://www.wbur.org/npr/150300040/why-matzo-makers-love-
regu...](http://www.wbur.org/npr/150300040/why-matzo-makers-love-regulation)).
The upshot was that Kosher food producers love the strict regulation -
complying with the elaborate Kosher rules makes a large barrier to entry into
the market.

This viewpoint may actually solve the apparent contradiction of large
companies decrying regulation, and giving money to candidates who want to "get
rid of red tape", yet actually lobby those same candidates pretty hard to
enact more and more regulation.

