Question

What is the major difference between the capture theory of regulation and the public interest theory of regulation?

A. The public interest theory of regulation holds that regulators seek to benefit the general public through regulations. The capture theory of regulation holds that no matter what the intent of the regulators, those who are supposed to be regulated will end up controlling the regulatory agency.

B. The public interest theory of regulation predicts that the outcomes of the regulatory process will tend to favor the regulators instead of either business interests or the public. The capture theory of regulation proposes that industry representatives are more heavily represented at regulatory hearings because they have been captured by announcements of hearings.

C. The public interest theory of regulation predicts that the regulators will act in their own self-interest. The capture theory of regulation proposes that regulators once worked in the industry and are therefore captured by their previous employers.

D. The public interest theory of regulation holds that the interests of the regulated will be served, whereas the capture theory of regulation holds that the public interest will be served.