Friday, July 26, 2013

Regulatory Capture

Regulatory capture occurs when a regulatory agency, created to act in the public interest, instead advances the commercial or special concerns of interest groups that dominate the industry or sector it is charged with regulating. Regulatory capture is a form of government failure, as it can act as an encouragement for firms to produce negative externalities. The agencies are called "captured agencies".

Can anyone name a agency that is not corrupt that calls itself government? anyone?

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