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Regulatory Capture

When regulation protects narrow interests – usually the interests of the incumbent industry – at the expense of the public interest. Capture occurs in various ways: from straightforward bribes and threats, to more implicit quid pro quos such as the lucrative future employment (revolving door), to softer forms of cognitive/cultural capture.
“… as a rule, regulation is acquired by the industry and is designed and operated primarily for its benefit.” George Stigler – The Theory of Economic Regulation (1971)

News

Reaching for Influence: Do Banks Use Loans to Establish Political Connections?

Mahsa Kaviani
A new study examines whether privately-owned banks seek political influence by offering preferred loan terms to corporate borrowers with valuable political connections, showing that...
News

The Metaphysics of Regulatory Capture

Karthik Ramanna
Stiglerian capture and corrosive cultural capture, its left-leaning parallel, are ostensibly symbionts, two attempts at identifying impediments to keeping markets competitive by preventing the...
News

Assessing George Stigler’s Economic Theory of Regulation

Cary Coglianese
Despite its flaws and limitations, Stigler’s seminal article on the theory of economic regulation remains an important piece of scholarship worthy of continued engagement,...
Commentary

The Many Faces of Stigler’s Theory of Economic Regulation: Interest Group Politics Still Thrives—But Industry Often Comes Second

Richard Epstein
Stigler treats industry groups as the heavyweights in regulatory contests. But surprisingly often groups of farmers and workers knock them for a loop in...
Commentary

The Incoming Currency War

Luigi Zingales
Four powerful forces—cryptocurrencies, the decoupling of geographical and monetary boundaries, ad-based digital platforms’ foray into the world of payments, and the value of data—are...
Commentary

George Stigler’s Errors and Their Virtues

Daniel Carpenter
George Stigler might have been wrong in his essay on economic regulation, but his influence is undeniable. The unity of purpose in his writings...
Antitrust and Competition

Fake Comments Cause Real Harm: How the Public Comment Process Was Corrupted

Harold Feld
Turning a blind eye to the corruption of the public comment process—or worse, lumping together genuine mass comments with fraudulent comments—corrupts the rulemaking process. At...
ESG, Corporate Governance & Future of the Firm

George Stigler and the Challenge of Democracy

Anat Admati
We are all victims of what George Stigler described as “the pervasive use of state support of special groups” and of governance failures everywhere....
Antitrust and Competition

Let’s Not Forget George Stigler’s Lessons about Regulatory Capture

Susan E. Dudley
George Stigler’s theory of economic regulation opened our eyes to the rent-seeking that undermines the public interest. Yet many in positions to influence policy...
Antitrust and Competition

Barriers to Entry as Another Source of Top Income Inequality

Philippe Aghion
A new book, The Power of Creative Destruction, explores how lobbying contributes to the increase in the top 1 percent’s share of income. An...
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The publication of the Stigler Center at The University of Chicago Booth School of Business

ProMarket is dedicated to discussing how competition tends to be subverted by special interests. The posts represent the opinions of their writers, not necessarily those of the University of Chicago, the Booth School of Business, or its faculty. For more information, please visit ProMarket Policy.