Regulatory Functions from Cells to Society

Regulatory functions are essential in both socioeconomic and biological systems, from corporate managers to regulatory genes in genomes. Regulatory functions come with substantial costs, but are often taken for granted. Here, we empirically examine regulatory costs across diverse systems -- biological organisms (bacteria and eukaryotic genomes), human organizations (companies, federal agencies, universities), and decentralized entities (Wikipedia, cities) -- using scaling analysis. We guide the empirical analysis with a conceptual model, which anticipates the scaling of regulatory costs to shift with the system's internal interaction structure -- well-mixed or modular. We find diverse systems exhibit consistent scaling patterns -- well-mixed systems exhibit superlinear scaling, while modular ones show sublinear or linear scaling. Further, we find that the socioeconomic systems containing more diverse occupational functions tend to have more regulatory costs than expected from their size, confirming the type of interactions also plays a role in regulatory costs. While many socioeconomic systems exhibit efficiencies of scale, regulatory costs in many social systems have grown disproportionally over time. Our finding suggests that the increasing complexity of functions may contribute to this trend. This cross-system comparison offers a framework for understanding regulatory costs and could guide future efforts to identify and mitigate regulatory inefficiencies.