Capture theory is
A) an economic theory of regulation.
B) a model about perfect competition.
C) the same as the public interest theory.
D) the theory that regulators capture firms' attention by dictating a very low price.
E) a theory that explains behavior of competitive firms.

Question

Quizplus · Accepted Answer

Capture theory is an economic theory of regulation, which suggests that regulatory agencies are often "captured" by the industries or firms they regulate, resulting in the agency acting in the interest of the regulated industry rather than in the public interest.

Capture Theory Is