One primary reason why regulatory capture may occur in an industry is that
A) the government designates unelected oﬃcials to head the various regulatory agencies of different industries.
B) there is a lot of bribery and corruption going on in all major industries that the government seeks to regulate.
C) the industry's leaders are the ones who pushed for the government to impose supervision and regulation over their industry.
D) people who are qualiﬁed to supervise and regulate the industry often come from the industry itself.

Question

Quizplus · Accepted Answer

Regulatory capture can occur when regulators come from the industry they are supposed to regulate, leading to conflicts of interest and the possibility of industry influence on regulation. This can be problematic because the regulatory agency may end up serving the interests of the industry rather than the public.

One Primary Reason Why Regulatory Capture May Occur in an Industry