Question

Which theory of regulation suggests that regulatory outcomes reflect the desire of regulatory agencies to increase their own budgets and power more than they reflect any interests of business or the public? a. Capture theory of regulation b. Public choice theory of regulation c. Public interest theory of regulation

Answer 1

Answer:b. Public choice theory of regulation

Explanation:Public choice theory states that different firms focuses on their own interest such that they may even exploit regulations to eliminate competition. Regulators also follows their own interests in order to enhance their prestige or incomes.