Richard Postner, an American jurist and economist, who is a Senior Lecturer at the University of Chicago Law School and also a judge on the US Court of Appeals for the Seventh Circuit in Chicago. Regulatory capture theory was set out by Prof. To define captured agencies refers to the government agencies that suffer regulatory capture. However, you have a problem if the only individuals qualified to become agency members are also wolves. If you are having problems because the wolves keep eating the sheep, perhaps setting up an agency might help protect those sheep.

When regulatory capture exists, the interest of political groups or companies become more important than those of the public, which leads to a net loss to society. Regulatory capture is a form of rent-seeking – trying to get a larger slice of a market’s total wealth without creating any additional wealth for that market.

Government failure, also known as non-market failure, is imperfection in government performance. Regulatory capture is a form of government failure. Regulatory capture, in the world of government monitoring, is like when the gamekeeper turns poacher, or at least, assists the poacher. Regulatory capture occurs when a government’s regulatory agency, which was created in the public interest, ends up advancing the political or commercial concerns of the very people, companies or entities it is supposed to be regulating.

Capture meaning