Which of the following is a characteristic of capture theory?
A) In deciding on a particular regulation, regulators consider the impact on key voters and on election finances.
B) The regulated subsequently try to control the regulator, to achieve their self-interest.
C) The regulator is a neutral arbiter, and does not let its own interest impact on its rule-making process.
D) None of the given options is correct.

Question

Quizplus · Accepted Answer

Capture theory suggests that the regulated industry can influence and control the regulator to serve their own interests. Option B accurately describes this characteristic. Option A is incorrect because capture theory does not assume that regulators consider the impact on key voters or election finances in their decision-making process. Option C is incorrect because capture theory assumes that regulators may be influenced by their own interests or by the interests of the industry they regulate. Option D is incorrect because option B is a valid characteristic of capture theory.

Which of the Following Is a Characteristic of Capture Theory