Regulatory economics

Okay kiddo, let me try to explain regulatory economics in a way you can understand.

Regulatory economics is like having a babysitter for grown-up companies. Just like how a babysitter helps make sure you don't do anything dangerous or break any rules, regulatory economics helps make sure companies don't do anything dangerous or break any rules.

The government is like the parents who hire the babysitter or regulatory economist. They make rules called regulations that companies have to follow to keep everyone safe and make sure things are fair. The regulatory economist makes sure companies follow all the rules and don't do anything that could harm people or the environment.

For example, if a company wants to build a big factory that might pollute the air, the regulatory economist will check to make sure the company has a plan to keep the air clean and how they will dispose of any waste. They might even test the air to make sure it is clean.

Another job of the regulatory economist is to make sure companies can't take advantage of people. They check to make sure companies can't charge too much money for things or make false claims about their products.

So in short, regulatory economics is all about making sure companies follow the rules so everyone is safe and treated fairly, just like how a babysitter makes sure you follow the rules so you don't get hurt or get into trouble.