Regulation on the Market of Professional Services

The market of professional services is faced with the serious information asymmetry. The article thinks that the regulation combination of market-government is insufficient and ineffective to analyse the market. At the same time, another institution-self-regulation has not been taken seriously. Self-regulation has the information advantage, which can lower transaction costs and assessment cost. However, taking into account the risk in self-regulation, the conclusion is that co-regulation will lead to the Pretto-improvement in the regulation arrangements.