Regulatory Capture

A phenomenon where regulated industries progressively influence regulatory agencies' decision-making through mechanisms such as lobbying, information asymmetry, and talent mobility, tilting rules in their favor. Regulators, who should represent the public interest, gradually become advocates for the industry instead.

Read the daily articles behind this idea on the Chinese edition.

Related principles

• → Links
  Standardization as Institutional Gatekeeping
• → Links
  Asymmetry of Training Cost vs. Ethical Liability
• → Links
  The Governance Paradox of Bidirectional Capital Market Opening
• → Links
  Hidden Cost Transfer
• ↺ Counters
  Promise-Delivery Gap Tax
• → Links
  Capability Proof & Gradual Liberalization
• → Links
  Shadow IT Governance Paradox
• → Links
  Winner-Take-Most Market Structure
• → Links
  Tool Complexity as Innovation Barrier