This book transcends current debate on government regulation by lucidly outlining how regulations can be a fruitful combination of persuasion and sanctions. The regulation of business by the United States government is often ineffective despite being more adversarial in tone than in other nations. The authors draw on both empirical studies of regulation from around the world and modern game theory to illustrate innovative solutions to this problem. Their ideas include an argument for the empowerment of private and public interest groups in the regulatory process and a provocative discussion of how the government can support and encourage industry self-regulation.

"Ayres and Braithwaite's book is particularly welcome for its attempt to address the ingredients of good regulation generically, and in a way which should be relevant both to their home territories of Australia and the United States and to other jurisdictions such as Britain ... the arguments put forward are very persuasive, and, on the occasion of its publication in paperback it deserves a wide readership among both criminal lawyers and public lawyers. That the book is cited with approval by Will Hutton in The State We're in suggests that it may yet be a very influential contribution to the regulation debate." - Public Law