The capture theory of regulation states that _____.

Question

Quizplus · Accepted Answer

The capture theory of regulation proposes that regulators, who are tasked with regulating certain industries or businesses, may eventually become captured by the interests of the regulated firms. In other words, the regulators may begin acting in the best interests of the regulated rather than the general public. This can happen as a result of various factors, such as close relationships between regulators and industry insiders, regulatory capture, or the revolving door phenomenon (where regulators move back and forth between the regulatory agency and the regulated industry). Therefore, the best answer is D - regulators act in the best interests of the regulated.

The Capture Theory of Regulation States That _____