Regulatory capture is when you make it more difficult to work in your industry on purpose through regulation, in order to discourage competition.
For example, McDonald's could push for a law that would require anyone who wants to run a chain restaurant to post a $100 million bond. Sure, they have to put up the bond too, but they have plenty of money to do so. The burden would probably stop many new chains from ever getting started.
For example, McDonald's could push for a law that would require anyone who wants to run a chain restaurant to post a $100 million bond. Sure, they have to put up the bond too, but they have plenty of money to do so. The burden would probably stop many new chains from ever getting started.
It is similar to rent seeking though.