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Samuel Peltzman Had a Different View to George Stigler on the Impact

Question 75

Multiple Choice

Samuel Peltzman had a different view to George Stigler on the impact of regulation on banks.He contends that:


A) firms in regulated industries actually seek out regulations because they bring monopolistic rents.
B) regulations shelter firms from changes in demand and cost,lowering its risk.
C) regulations can increase consumer confidence which increases customer loyalty to regulated firms.
D) depository institutions should be regulated no differently than any other corporation with no subsidies or special privileges.
E) None of the options are correct.

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