Which theory of regulation assumes that the industry wants to be regulated, in order to reduce competition and achieve cartel-like conditions?
A) public interest theory
B) legal cartel theory
C) price-fixing theory
D) public ownership theory

Question

Quizplus · Accepted Answer

The legal cartel theory assumes that the industry wants to be regulated in order to reduce competition and achieve cartel-like conditions. It suggests that regulation is sought by firms in an industry to limit market entry and competition, thereby increasing profitability.

Which Theory of Regulation Assumes That the Industry Wants to Be