The Influence of Agents on the Cost of Bureaucracy and the Determinants of their Behavior
The fulfillment of legal requirements generally issues companies with costs, which in part are not due to the actual law but to the administration of the law. This burden, commonly known as bureaucratic costs, cannot necessarily be gleaned solely from reading the law. Frequently, the relevant authorities decide the concrete realization of the legal norm based on their discretionary power. Furthermore, the company itself retains a variety of options as to how they are to satisfy the demands. In Michael Schorn's doctoral thesis with Prof. Bizer at the Economic Faculty of the University of Göttingen, he points out the the usage of this leeway granted to the actors in fulfilling the legal demands has a significant impact on the height of the bureaucratic costs the company realizes and shows the significance of the relationship between politics and administration in the creation of the financial burden.