George Stigler's Theorem

George Stigler's Theorem states that government regulation tends to be captured over time by the industry it aims to control. In other words, regulators often become aligned with the interests of the industry they oversee, rather than protecting the public. This happens because industries have more direct knowledge and resources, allowing them to influence regulations in their favor. As a result, regulation often benefits established businesses at the expense of consumers or new competitors, rather than achieving its original goal of public interest.