Under the regulatory capture theory of regulation interest groups are assumed to try to gain control of the regulator to achieve their desired wealth distribution.

Question

Quizplus · Accepted Answer

Under the regulatory capture theory, interest groups seek to influence or control the regulatory system in order to advance their own interests, often at the expense of the broader public interest. This can include efforts to shape the rules and policies of regulatory agencies, influence regulatory decisions or appointments, or exert direct control over the regulator itself. The goal of these efforts is typically to achieve a more favorable distribution of wealth or resources for the interest group in question.

Under the Regulatory Capture Theory of Regulation Interest Groups Are