Unverified60% confidenceFactExact time
Academics refer to the phenomenon of companies proactively participating in defining the boundaries of issues to influence regulation as an active variant of regulatory capture.
2
Sources
60%
Confidence
Long-term
Relevance
9/17/2026
First Seen
Sources
Related Entities
Related Claims
UnverifiedLeading enterprises actively participating in the legislative process helps them exert influence during the stage when regulatory rules are being formulated.72% similarUnverifiedRegulatory capture refers to the phenomenon whereby the regulated party gradually influences or even dominates the oversight body that is supposed to check it, through advantages in resources, information, or relationships.71% similarUnverifiedDifferences in rules across jurisdictions may lead to regulatory arbitrage, with companies relocating high-risk research and development to regions with looser regulation.67% similarVerifiedRegulatory capture is a classic concept in public choice theory, referring to the phenomenon whereby regulatory agencies are influenced by the industries they are supposed to regulate, ultimately producing policies that benefit incumbent firms rather than the public.67% similarUnverifiedWhen a single institution is both the model developer and the risk assessor, a conflict of interest naturally exists.66% similar
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