Entry Barriers and Competitive Governance

Article

Friedman, Patri and Taylor, Brad R.. 2020. "Entry Barriers and Competitive Governance." Journal of Special Jurisdictions. 1 (1), pp. 51-82.
Article Title

Entry Barriers and Competitive Governance

Article CategoryArticle
AuthorsFriedman, Patri (Author) and Taylor, Brad R. (Author)
Journal TitleJournal of Special Jurisdictions
Journal Citation1 (1), pp. 51-82
Number of Pages32
Year2020
Place of PublicationSalt Lake City, United States
Web Address (URL)http://ojs.instituteforcompgov.org/index.php/jsj/article/view/7
Abstract

Existing arguments for competitive governance have for the most part considered the free movement of people among many jurisdictions as necessary and sufficient conditions for competition. This paper argues for the importance of entrepreneurial entry and suggests that barriers to entry should be seen as the primary impediment to robust and effective competition in the market for governance. Competitive entry allows for many policy and institutional ideas to be tested in parallel, leading to perpetual innovation in the market for governance. Low-cost entry also protects against the risks of centralization, collusion, and institutional inertia. This argument provides support for proposals aiming to create new jurisdictions or enable the creation of new non-territorial governance providers, as well as providing insight into the desirability and feasibility of each such proposal.

KeywordsPublic choice, Tiebout competition, competitive governance, non-territorial governance, entry barriers, special economic zones
ANZSRC Field of Research 2020380118. Urban and regional economics
440708. Public administration
380113. Public economics - public choice
Byline AffiliationsSeasteading Institute, United States
University of Southern Queensland
Institution of OriginUniversity of Southern Queensland
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