Oct

28

how much of masters 1000 and airline regulation and coke and walmart and sports leagues and the stock market in general can be explained by this:

George J. Stigler, "The Theory of Economic Regulation"

In the field of regulatory policy, few articles have achieved the impact of George Stigler’s "The Theory of Economic Regulation," published in 1971. Stigler punctured the idea that regulation arises solely to advance the overall public interest by correcting market failures. He forcefully argued that instead “regulation is acquired by the industry and is designed and operated primarily for its benefit” (p. 3). Although Stigler never used the phrase “regulatory capture” in “The Theory of Economic Regulation,” his article has nevertheless come to be so identified with the idea that regulation serves private interests that it is hard to find any serious discussion of regulatory capture in the last 40 years that does not at least cite Stigler’s work.

From WSJ, 2014:
Regulatory Capture 101
Impressionable journalists finally meet George Stigler.

The financial scandal du jour involves leaked audio recordings that purport to show that regulators at the Federal Reserve Bank of New York were soft on Goldman Sachs. Say it ain’t so.

The news is being treated as shocking by journalists who claim to be hard-headed students of financial markets. One especially impressionable columnist calls it “a jaw-dropping story about Wall Street regulation.” The real scandal here is the excessive faith that liberal journalists and politicians continue to put in financial regulation. The media pack is discovering regulatory capture—a mere 43 years after George Stigler published his landmark paper on the concept.

Willem H. Buiter and cognitive regulatory capture:
Lessons from the North Atlantic financial crisis

lets take the big Pharma that held back its announcement that it had a vaccine and it was effective for covid—-held back announcement for day after election. then received 100s of millions of orders and reg approval after election - as well as airlines receiving millions if they ageed to body tape all those that mite vote against who didnt maintain the semblance that masks worked. what other examples can you give besides big P and airlines?

For more examples:
Regulatory capture

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