/*! This file is auto-generated */ .wp-block-button__link{color:#fff;background-color:#32373c;border-radius:9999px;box-shadow:none;text-decoration:none;padding:calc(.667em + 2px) calc(1.333em + 2px);font-size:1.125em}.wp-block-file__button{background:#32373c;color:#fff;text-decoration:none} Q. 25 What is regulatory capture?... [FREE SOLUTION] | 91影视

91影视

Log out

Learning Materials

Features

Discover

Chapter 11: Q. 25 (page 272)

What is regulatory capture?

Short Answer

Expert verified
Regulatory Capture is a failure of government that occurs when a regulatory body is created to serve the public interest.
Instead, it supports the political or financial interests of special interest groups that control the industry or sector that it is intended to govern.

Step by step solution

01

Step1. Introduction

Regulatory capture is a type of government failure in which regulators grow friendly to the industry they are intended to regulate.

02

Step2. Explanation

RegulatoryCaptureisafailureofgovernmentthatoccurswhenaregulatorybodyiscreatedtoservethepublicinterest.
Instead,itsupportsthepoliticalorfinancialinterestsofspecialinterestgroupsthatcontroltheindustryorsectorthatitisintendedtogovern.
Whenpoliticalpartiesorcorporationsobtainregulatoryauthority,theirintereststakeprecedenceoverthepublic's.
Asaresult,societyasawholewilllosemoney.
As a result, "captured agencies" refers to government entities that have been enslaved by regulatory capture.

Unlock Step-by-Step Solutions & Ace Your Exams!

  • Full Textbook Solutions

    Get detailed explanations and key concepts

  • Unlimited Al creation

    Al flashcards, explanations, exams and more...

  • Ads-free access

    To over 500 millions flashcards

  • Money-back guarantee

    We refund you if you fail your exam.

Over 30 million students worldwide already upgrade their learning with 91影视!

One App. One Place for Learning.

All the tools & learning materials you need for study success - in one app.

Get started for free

Most popular questions from this chapter

If public utilities are a natural monopoly, what would be the danger in splitting them into a number of separate competing firms?

What is cost-plus regulation?

What is predatory pricing? How might it reduce competition, and why might it be difficult to tell when it should be illegal?

Deregulation, like all changes in government

policy, always has pluses and minuses. What do you think some of the minuses might be for airline

deregulation?

In the middle of the twentieth century, major U.S.

cities had multiple competing city bus companies.

Today, there is usually only one and it runs as a

subsidized, regulated monopoly. What do you suppose caused the change?
See all solutions

Recommended explanations on Economics Textbooks

Taxation Economics

Read Explanation
View all explanations

What do you think about this solution?

We value your feedback to improve our textbook solutions.

Study anywhere. Anytime. Across all devices.