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".
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... as a concept has also been used in political science (Regulatory capture), law and economics (Regulatory economics) ... This different perspective on essentially same thing is what allows to Regulatory Capture and Deep Capture, discussed below ... The idea of Regulatory capture has an obvious economic basis, in that vested interests in an industry have the greatest financial stake in regulatory activity and are more likely to be ...
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