Which of the following statements best describes the outcome of regulatory capture?

Question

Quizplus · Accepted Answer

Regulatory capture occurs when a small group of individuals or corporations with a vested interest in the outcome of a regulation gain control over the regulatory process, leading to policies that benefit them rather than the broader public. This can manifest in several ways, such as through the appointment of industry insiders to regulatory agencies, the provision of favors or influence to regulatory officials, or the use of political contributions or other forms of leverage to sway policymaking. The result is often an erosion of public trust in the regulatory process and a failure to adequately protect the public interest.

Which of the Following Statements Best Describes the Outcome of Regulatory