9. With time, regulatory agencies often adopt the views of the industries they are supposed to regulate.

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9. With time, regulatory agencies often adopt the views of the industries they are supposed to regulate. Regulation is inflexible and generally fails to keep up with dynamic change. Special interest groups, including the bureaucrats conducting the regulation, often exert a d isproportionate influence on the direction of regulation. As the experience of regulatory agencies such as the CAB and ICC indicates, regulatory procedures may themselves become a source of monopoly power, waste, and economic inefficiency.

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Economics Private And Public Choice

ISBN: 9780123110404

2nd Edition

Authors: James D Gwartney; Richard Stroup; A H Studenmund

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