Varieties of Regulatory Standards
omanagerial regulations – heterogeneity of regulated parties; non-observable outputs (e.g., inputs – e.g., 1 teacher per 20 students)
-almost never have rights
-design standards – non-observable outputs, but homogeneity of parties (e.g., you must apply best available technology)
-almost always have rights
-performance standards – observable outputs (e.g., measure parts per billion of chemical)
-sometimes have rights
-used in State Farm – said need restraints – but could have had design standard of requiring airbags – idea is agency shouldn’t be in business of designing technologies