When agencies tasked with regulating businesses, industries, or other interest groups are populated by individuals with close ties to the very firms that they are supposed to regulate, it is described as

Question

Quizplus · Accepted Answer

Agency capture occurs when regulatory agencies become controlled by the interest groups or businesses they are supposed to regulate. This happens when individuals in the regulatory agency have close ties to the firms they are regulating, causing them to favor the interests of these firms over the public interest. This can result in weakened regulation and enforcement, and a failure to protect the public from harmful effects of these industries. Inside lobbying refers to efforts by interest groups to influence policymakers from within, often utilizing personal relationships or connections. Purposive lobbying refers to efforts by interest groups to influence policymakers with a clear policy goal or objective. Executive collusion does not refer to regulatory capture but to collusion between government officials to further their own ends.

When Agencies Tasked with Regulating Businesses, Industries, or Other Interest