Economic Theory of Regulation Essay Example | Topics and Well Written Essays - 2000 words

Economic Theory of Regulation - Essay Example The most known work of Stigler that affects many individuals and groups at present is that of the economic theory of regulation. This theoretical understanding of the major thoughts that has been created to help the society see through the situations mandated as part of the development of the human community creates a knowledgeable knowing on the part of the people's realization as to how they are playing an important role in the society. The economic theory of regulation basically shows how much people are affected by economy. The systems of the society and the rules that are established around the people living in it has long been derived from the many considerable thoughts of the ongoing relationship between social elements as per established through economic connections and demands. The relationship between every person and the groups that creates the entire society is shaped by needs and demands that each needs from the other. Through these demands, the creation of products and services are given way as per mandated through the different provisions allowed by the established legal regulations to exist. The theory of Stiglist suggests the strong implication as to how rules and regulations shape the society's capability of existing in the cause of creating balance among people and groups as established by each one's economic pursuits. In the discussion that follows, a careful understanding of the major issues concerned in understanding Stiglist's implicative theory on microeconomics naturally affect the author of this paper and how the entire idea affects the whole world basically shall be presented to the respective readers of this piece. Through this, the author aims to outline how much regulations of economy have naturally created rules and basic understanding on the roles of existence that each plays to benefit the others. ON Personal Views of the Economy As a regular individual, the author of this paper recognizes the real need to purchase things and get services that are necessary for life. Apparently, there are rules established for such needs and these rules are the ones greatly outlining the values that exist in the human society today. It is through these regulations that the birth of the many systems of economic operations are given way to control the ways by which consumers prefer to have the products that they ought to consume. It is through this that the regulations on how and when people buy what they need is established, and it is through this process that the monetary value of each service and product is identified as part of the demands of the human individuals given way as part of the fact that people and social groups exist for the survival of the other and vice versa. How does this idea affects the author personally Being an ordinary member of the society, the author is basically affected by the theory through becoming highly involved in the process of buying and appreciating products and services offered in the market through the scale of his monetary capability; a regulatory matter that is rather considered as