Which of the following best defines regulatory capture and how it might occur?

• A. Regulators act in the interest of the industries they regulate, often via lobbying, revolving-door staffing, or information asymmetries.
• B. Regulators act independently of industry influence and strictly follow statutory mandates.
• C. Regulatory capture occurs when agencies become too small to regulate.
• D. Regulatory capture is when the public controls agency decisions directly.

Answer: (A)