No.104261
Why is regulatory capture such a hard pill to swallow? Is it just too abstract? Do people who keep suggesting more and more regulations to solve certain problems understand the lobbying process, the incentives involved, and even if those can be overcome, how bureaucracies really function?
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No.104269
People like to believe that there's a lever they can pull to make things better, to "fix" the problem. Most of them, even moderately pro-market types, don't truly understand how the market functions, so trusting "the market" to fix it, an abstract entity which they don't quite understand, gives them anxiety. Regardless of logical arguments (which are usually irrelevant when it comes to Normans), the idea of a benevolent agency making sure that only the good things happen and the bad things don't happen provides a certain kind of security. This becomes doubly true when one considers that nearly all Normans went to public school, where it was drilled into their heads that bureaucrats are selfless civil servants with your best interests in mind.
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No.104375
If we're talking about regulatory capture would having competing regulating agencies in a market be better? It seems like a lot of these types of problems stem from a lack of competition.
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No.104376
>>104375
In certain cases, competing regulatory agencies would be desirable, if consumers derived some value from it. An agency which certifies a firm to put certain labels on its product (e.g., "certified organic") would be mutually beneficial to the seller and buyer, so we can expect certification forms to compete with on the market. Current experience, however, suggests that quality-controlling regulatory agencies would not be competitive, and fall out of the market. Nearly all food providers in the market right now, even fast food joints, have a set of of internal regulations that they follow which are stricter than the FDA's. This implies that firms can compete on quality directly, ergo they would be no market for quality-based regulation.
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No.105326
Learning about regulatory capture did push me more into libertarianism tbh.
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