Over time, regulatory machinery may shift toward the special interests of producers, who, in effect, "capture" the regulating agency.

Question

Quizplus · Accepted Answer

Regulatory capture is a real phenomenon where regulatory agencies that were created to protect public good end up serving the industry they are supposed to regulate. This happens when lobbyists, special interest groups, and industry insiders influence the regulatory machinery over time, leading to skewed policies and decisions that benefit the producers rather than the public.

Over Time, Regulatory Machinery May Shift Toward the Special Interests