YES, there is a tradeoff here and yes regulatory capture is real, but there are also plenty of benign agencies that balance these things fairly well. Most people on these forums live in nations where regulators do a pretty darn good job on the well-understood problems and balance these concerns fairly well. (Inside Context Problems?)
You tend to see design of regulatory processes that requires stakeholder input; in particular, the modern American regulatory state’s reliance on the Administrative Procedure Act means that it’s very difficult for a regulator to regulate without getting feedback from a wide variety of external stakeholders, ensuring that they have some flexibility without being arbitrary.
I also think, contrary to conventional wisdom, that your concern is part of why many regulators end up in a “revolving-door” mechanism—you often want individuals moving back and forth between those two worlds to cross-populate assumptions and check for areas where regulation has gotten misaligned with end goals
This is definitely a tradeoff space!
YES, there is a tradeoff here and yes regulatory capture is real, but there are also plenty of benign agencies that balance these things fairly well. Most people on these forums live in nations where regulators do a pretty darn good job on the well-understood problems and balance these concerns fairly well. (Inside Context Problems?)
You tend to see design of regulatory processes that requires stakeholder input; in particular, the modern American regulatory state’s reliance on the Administrative Procedure Act means that it’s very difficult for a regulator to regulate without getting feedback from a wide variety of external stakeholders, ensuring that they have some flexibility without being arbitrary.
I also think, contrary to conventional wisdom, that your concern is part of why many regulators end up in a “revolving-door” mechanism—you often want individuals moving back and forth between those two worlds to cross-populate assumptions and check for areas where regulation has gotten misaligned with end goals