Capture theory is
A) a model about perfect competition.
B) a theory that explains the behaviour of competitive firms.
C) the same as public interest theory.
D) the theory that regulators capture firms' attention by dictating a very low price.
E) an economic theory of regulation.

Question

Quizplus · Accepted Answer

Capture theory is an economic theory of regulation that explains how regulatory agencies may be influenced or "captured" by the industries or firms they are supposed to regulate, leading to regulatory capture and potential conflicts of interest.

Capture Theory Is