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:
“This is the hope of many adolescent girls—to capture a parent’s heart with love for them as they are, as people. They reject the notion of being loved just because they are the child of the parent. They want the parent to fall in love with them all over again, because being new, they deserve a new love.”
—Terri Apter (20th century)