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avinash0312 avinash0312
wrote...
Posts: 474
Rep: 7 0
5 years ago
The capture hypothesis suggests that

• marginal cost regulation is superior to average cost regulation.

• the well-focused interests of consumers will lead to the over-regulation of most industries.

• regulation will lead to over-entry and eventual losses for firms in the industry.

• the firms being regulated will unduly influence the regulators.
Textbook 
Economics Today: The Micro View

Economics Today: The Micro View


Edition: 19th
Author:
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Jax
wrote...
5 years ago
the firms being regulated will unduly influence the regulators.
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