The Capture Theory

The Capture Theory suggests that government regulators can become overly influenced or "captured" by the industries they are supposed to regulate. Instead of acting in the public's best interest, these regulators may prioritize the desires and benefits of the industry, leading to decisions that favor business profits over consumer protection or public welfare. This phenomenon often occurs when industry professionals take on regulatory roles, creating conflicts of interest. As a result, regulations may become less effective, allowing potentially harmful practices to continue unchecked.