Culture and the regulation of entry

We argue that individualism influences social preferences for regulation. * We find individualistic countries regulate entry more lightly. * Individualism significantly interacts with formal legal and political institutions. * Individualism has a greater impact in democracies and common law countries. * Political and legal institutions magnify cultural preferences into policy outcomes. Does culture affect the manner in which a society regulates the entry of new firms? Our results suggest it does. We find more individualistic countries regulate entry more lightly. We investigate how culture mat... Mehr ...