The idea that government regulations often end up by serving the regulated firms is called:
A) public choice theory.
B) public interest theory.
C) the capture theory of regulation.
D) the rational ignorance theory of regulation.

Question

Quizplus · Accepted Answer

The capture theory of regulation states that regulated firms or industries end up controlling the regulatory agency that was originally created to regulate them. This can lead to regulations that serve the interests of the regulated firms rather than the public interest.

The Idea That Government Regulations Often End Up by Serving