Economic Interest Theory and Regulation
The theory suggests that regulations are set of policies driven by forces of supply and demand. The government is placed on the supply side while the interest groups on the demand side. The theory suggests that regulation is developed by the industry and that the objective of regulations is to create advantages to the industry concerned. This theory was developed in 1971 by Chicago theory of government and the economic theory of regulation (J. G. Stigler, The Theory of economic regulation, n.d....
