Regulatory capture occurs when a state regulatory agency, created to act in the public interest, instead advances the commercial or special interests 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 large firms to produce negative externalities. The agencies are called “captured agencies.

Regulatory capture is one of my favorite topics. Via Wiki
  06/08/12 at 08:31pm
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