Question

. Given what you know about regulatory capture, can you describe a possible scenario where accusations of restrictive practices ends up limiting competition, rather than extending it?

Answer 1

Regulatory capture is a structure of government failure where those bodies managing industries become genial to the businesses they are supposed to be regulating. Regulatory capture can mean monopolies can keep on to charge higher prices.
Regulatory capture is an economic theory that explains regulatory agencies may come to be controlled by the industries or interests they are charged with adjusting. The result is that an agency, imposed with acting in the public interest, instead acts in ways that profit the industry it is supposed to be synchronised.
Regulatory agencies that come to be managed by the industries they are charged with balancing are known as captured agencies, and agency capture happens when that governmental body works essentially as an advocate for the industries it regulates.