Search results for "Regulatory capture"
showing 2 items of 2 documents
Tackling Market Failure or Building a Cartel? Creation of an Investment Regulation System in Finnish Forest Industries
2015
Government intervention in the economy is often justified by the need to correct market failures. This study analyzes one case, the investments of Finnish forest industries, in which, in the late 1960s and early 1970s, both policy makers and the trade association representing the sector reasoned that intervention was particularly necessary because otherwise, the only substantial natural resource in the small country would be overexploited. In the long run, however, the growth of forest resources turned out to be higher, and the demand for wood lower, than expected. Furthermore, the most influential industrialists managed to “capture” the regulatory system and make it a component of their ne…
Institutional Entrepreneurship, Trust, and Regulatory Capture in the Digital Economy
2019
In regard to the problem of the new markets' opening and their regulation, some scholars have introduced the concept of “institutional entrepreneur” in economic literature. This new definition of entrepreneur is important to highlight, albeit in informal and descriptive terms, the existence of functional relationships between activities typical of private market competition and those more specifically, of the public sector. Even if this new economic character can provide an interesting key to understanding what can really happen in the narrow zone that separates the public and private markets, it does not consider some conceptual components that are not minor for the purposes of complete ch…