List of Service Models
Auction
With the auction model, the state sells its services to the highest bidder in an open competitive process. This is an uncommon scenario, as government services have fees, charges, and prices determined through political means.
Car numbers
Switzerland
In Switzerland, car numbers are issued by cantons. Two letters define the canton (for example, “SG” for the canton of St. Gallen), followed by a sequence number. The shorter the number, the older the car is. Today, low numbers that are returned are sold at public auctions. The record holder in Switzerland is the number “ZG 10,” who paid CHF 233,000.
20.02.2025
Sanction
With the sanction model, the state punishes non-compliance with norms (e.g., laws, ordinances, regula-tions). It directly accesses a core competence of the state, namely the exercise of legitimate state power. The prerequisite for exercising this authority is always a legal framework that grants the state the compe-tence to address the specific offense.
Dispute Settlement System
WTO
The Word Trade Organization defines rules for international trade. However, according to the WTO, the best international agreement is worth nothing if obligations cannot be enforced. In the Uruguay Round, a system was established to address disagreements between member states and impose sanctions for those violating WTO rules.
20.02.2025
Regulation
There are two basic tasks associated with the regulation model: regulation and monitoring compliance with the rules of a specific economic sector. This model differs from the role of the state as legislator, since the main purpose is to create and maintain competition.
Sector regulators
Latin America
In Latin American countries, a number of regulators have been established to oversee specific sectors of network industries. Their tasks are similar to those in other countries, and their problems similar. Ac-cording to the OECD, there are often discernible differences between formal independence and the actual influence of politics on the regulator’s activities. As a result, the rules of the free market can be under-mined in the sectors concerned.
20.02.2025
Regulation
There are two basic tasks associated with the regulation model: regulation and monitoring compliance with the rules of a specific economic sector. This model differs from the role of the state as legislator, since the main purpose is to create and maintain competition.
Railway safety regulators
South Africa
In order to improve rail safety, a dedicated regulatory authority has been established in South Africa, based on a law passed in 2002. In order to use the South African rail network, train operators must apply to the Railway Safety Regulatory Authority for a safety permit and demonstrate that they meet the pre-scribed operational requirements.
20.02.2025
Regulation
There are two basic tasks associated with the regulation model: regulation and monitoring compliance with the rules of a specific economic sector. This model differs from the role of the state as legislator, since the main purpose is to create and maintain competition.
Regulatory Office for Network Industries
Slovakia
In Slovakia, an office was established to act as a regulator and oversee all network industries. It is fi-nanced from its own budget and legally and functionally independent of both the government and regu-lated companies. It oversees the electricity, natural gas, heating, water, and wastewater sectors and regu-lates the prices in each market. In order to keep up with current developments, it regularly exchanges information with comparable bodies in other countries in the EU.
20.02.2025
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