Business groups as well as individual companies have weaker incentives to interact with government when it controls markets, lets contracts, and regulates business activity.

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Business groups and individual companies actually have stronger incentives to interact with government when it controls markets, lets contracts, and regulates business activity. This is because government policies and regulations can directly impact their business operations and profits. Therefore, businesses are more inclined to engage with government in order to influence policies and regulations that would be favorable to them.

Business Groups as Well as Individual Companies Have Weaker Incentives