Regulatory Capture
Etymology
The theory is associated with economist George Stigler and the Chicago school, notably his 1971 paper on economic regulation. “Capture” is from Latin “capere,” to seize — the regulator is, in effect, taken over by those it governs.
noun phrase · /REG-yuh-luh-tor-ee KAP-cher/
When an agency meant to regulate an industry ends up serving that industry’s interests instead of the public’s.
What it names
A sharp name for how oversight quietly flips into protection — useful whenever a watchdog seems to work for the very companies it is supposed to police.
Example
Revolving-door hiring between the agency and the banks it oversees is textbook regulatory capture.
Related idea
It is a downstream form of rent-seeking: firms invest in influencing the rule-makers, and capture is the payoff when that investment turns the referee into a teammate.