Regulatory capture is more likely to occur when the regulatory agency has individual members who have the potential to be employed in the future by the industry they are involved in regulating.

Question

Quizplus · Accepted Answer

Regulatory capture occurs when a regulatory agency becomes too closely aligned with the interests of the industry it is supposed to regulate, rather than serving the public interest. When individual members of the regulatory agency have the potential to be employed by the industry they regulate in the future, they may be more likely to develop a sympathetic view of the industry's interests or be influenced by the industry's perspectives, which can make regulatory capture more likely.

Regulatory Capture Is More Likely to Occur When the Regulatory