Many people believe that the supply and demand for regulation will result in the most powerful coalition group controlling the regulatory body. That powerful group is often made up of the companies that are supposed to be regulated. This theory is called:

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The capture theory proposes that regulatory bodies are often captured by the industries that they are supposed to regulate, resulting in the industries having significant control over the regulatory process. This theory is based on the concept of supply and demand for regulation, with the powerful group being the regulated companies.

Many People Believe That the Supply and Demand for Regulation