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Capture Theory of Regulation
Capture Theory of Regulation definition - finance
A theory developed by George Stigler that says
an industry can benefit from regulation if it can capture the regulatory agency
involved. This can happen if the industryÂ’s political influence and technical
knowledge makes the regulatory agency dependent on it. Political appointees
from the industry, along with the agencyÂ’s need for informal cooperation from
the industry, help create a situation in which the agency is captured.
Webster's New World Finance and Investment Dictionary Copyright © 2003 by Wiley Publishing, Inc., Indianapolis, Indiana.
Used by arrangement with John Wiley & Sons, Inc.
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