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".
Famous quotes containing the word capture:
“Writing prejudicial, off-putting reviews is a precise exercise in applied black magic. The reviewer can draw free- floating disagreeable associations to a book by implying that the book is completely unimportant without saying exactly why, and carefully avoiding any clear images that could capture the reader’s full attention.”
—William Burroughs (b. 1914)