Regulatory Capture
Regulatory capture is a theory that a regulator may come to serve the interests of the industry or group it oversees rather than the broader public interest. It is a way to analyze potential institutional influence, not proof that a particular agency or official has acted improperly.
Regulatory capture is a theory that a regulator may come to serve the interests of the industry or group it oversees rather than the broader public interest. It is a way to analyze potential institutional influence, not proof that a particular agency or official has acted improperly.
Example: Researchers may examine whether repeated industry access, revolving-door employment, or reliance on regulated firms’ technical information influences an agency’s decisions.
Common misconception: Regulatory capture always involves bribery or other illegal conduct. It may be alleged where influence occurs through lawful channels; specific misconduct requires evidence and application of the relevant law.
Sources: https://www.gao.gov/; https://www.britannica.com/topic/regulatory-capture