Regulation by Contract

A form of regulation in which the regulatory authority (who could be a mayor or a regulatory commission) monitors and enforces a license. In contrast to the Anglo-American tradition of independent regulatory commission, the French tradition involves a well-defined concession agreement or contract. Many Latin American nations have a combination of the two mechanisms, with an independent commission ensuring that the terms of the contract are met (including price revisions based on the initial contract). Some analysts view this blend of the two approaches as showing promise.