Assignment Goal: The value of self-regulation to society, industry and individual firms is a given. Self-regulation is a valuable tool for industry but one which is difficult to agree on and implement. An important goal for most self-regulatory schemes is the preemption of formal regulation. To achieve this, the self- regulatory scheme must be sufficiently strong and must gain acceptance/coverage within the industry. A second problem regarding acceptance is confidence in the administration of the self-regulatory scheme. Thus, the design needs to be generally compatible with firm and industry interests: individual firms must be willing to conform to self-regulatory actions against their short-term interest, in a belief that the success of self- regulation will be beneficial in the long term. With these learning goals in mind, turn to page 11 of the case: "Revising CARU's Guidelines?" There are 2 paragraphs in that