State intervention in business and consumer relations

Abstract

 The relationship between the State and companies is an old discussion. The government uses the Law to create guidelines that will be followed by companies and society and the Law, in turn, uses the principles and statements of the economy to measure whether the proposed legislation and interference were efficient. Brazil, as of the Federal Constitution of 1988, needs to encourage economic development, but it cannot disregard the protection of the community and social justice. Advances in this theme, arising from the Economic Analysis of Law, motivate the debate on the issue. This text discusses state intervention in business and consumer relations, exemplifying with some practical cases and drawing notes regarding this compatibility. To support the work, a bibliographical research was carried out on the relationship between the market and the State, passing through behavioral economics tools, namely shortcuts of thought, systematic errors and nudges. It proposes, therefore, that state interventions in business relations should be limited to cases in which the market itself cannot provide solutions that stimulate the economy and guarantee the protection of the interests of the community.