Regulatory capture

Topic

Regulatory capture is a form of corruption of authority that occurs when a political entity, policymaker, or regulatory agency is co-opted to serve the commercial, ideological, or political interests of a minor constituency, such as a specific industry or profession. Instead of acting in the public interest, the captured regulator advances the commercial or special interests of the dominant players in the sector it is charged with regulating. This phenomenon is a key concept in public choice economics and regulatory theory.