The problem of regulatory capture

• What is regulatory capture?:

  • Regulatory capture is when a government agency operates in favour of producers rather than consumers
• What is regulatory capture?:

  • Regulatory capture is when a government agency operates in favour of producers rather than consumers
• What is it called when a government agency operates in favour of producers rather than consumers?

  regulatory capture
• Why does regulatory capture happen?

  suppliers have lobbying power with government agencies