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The New Global RulersThe Privatization of Regulation in the World Economy$
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Tim Büthe and Walter Mattli

Print publication date: 2011

Print ISBN-13: 9780691144795

Published to Princeton Scholarship Online: October 2017

DOI: 10.23943/princeton/9780691144795.001.0001

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Institutional Complementarity Theory

Institutional Complementarity Theory

(p.42) Chapter Three Institutional Complementarity Theory
The New Global Rulers

Tim Büthe

Walter Mattli

Princeton University Press

This chapter examines the distributional consequences of shifting rule-making to the international private and nonmarket sphere. In particular, it asks who wins, who loses, and why when international standard-setting takes place in private focal rule-making institutions. It considers what is distinctive about the politics of rule-making in these transnational institutions, what defines power in these organizations, and how it operates. The chapter answers these questions using institutional complementarity theory. It first provides an overview of the institutional setting of nonmarket private governance, focusing on actors and sources of power, before discussing institutional complementarity, effective representation of domestic interests at the international level, and timeliness of involvement and information. It shows that domestic standardization systems characterized by institutional hierarchy facilitate the accommodation of the new institutional layers of standardization activity above the national level.

Keywords:   nonmarket private governance, international standard-setting, rule-making institutions, institutional complementarity theory, nonmarket private governance, power, institutional complementarity, domestic interests, domestic standardization

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