Share This Article:

Economic Definition of capture theory of regulation. Defined.

Offline Version: PDF

Term capture theory of regulation Definition: Control of a regulatory agency by those entities, usually the businesses of a particular industry, that the agency is designed to regulate. Those industries subject to economic regulation that is intended to protect the public interest (consumers) invariably find it beneficial to exert influence over the regulatory agency. One common way of doing this is to have former or future employees in the industry "temporarily" work for the regulatory agency.

 

« capitalism | cardinal »

Permalink: http://glossary.econguru.com/economic-term/capture+theory+of+regulation

Alphabetical Reference to Over 2,000 Economic Terms