Abstract:

With the unforeseen technological advancement that humanity has been experiencing over the past years, there come new entrepreneurial opportunities via the so-called new business models that are accompanied by a number of advantages for all market participants. They also bring along a number of problems. Primarily for regulators. New business models are characterized by a wide usage of modern technologies and dramatic decrease of transaction costs of trade which leads to many market disruptions. These disruptions naturally occur in the legislative framework and regulatory fundaments. Based on the theoretical basis of the economic school Public Choice and on its academic texts, we can expect a reaction from the regulators. Thanks to uniquely applying the modified Peltzman model of regulation and analysis of interest groups, we can summarize that regulations will not be prohibitive and its strength will vary mostly based on the strength of opposition interest groups. The current regulatory frameworks are not well equipped to deal with new business models. Potential changes are often not implemented on time. One of the reasons is the characteristic rigidity of current legislation in the Czech Republic, in Europe, and many other countries worldwide.