Many people believe that the supply and demand for regulation in an industry often results in the creation of a powerful coalition group controlling the regulatory body.That powerful group often comprises of executives from the same industry that is supposed to be regulated.This is called:

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Capturing refers to a situation where a regulatory agency created to serve the public interest is "captured" or taken over by the industry it regulates. This happens when industry executives work to establish a dominant position within the regulatory agency, and use their power to shape regulations to their advantage. The result is that regulations can be weakened or made ineffective, and the public interest is not served. This phenomenon is a well-documented problem in regulatory policy, and is a major challenge for those seeking to create effective regulations that serve the common good.

Many People Believe That the Supply and Demand for Regulation