"The public interest theory of regulation claims that government regulation acts to protect and benefit the public."
It suggests that the government acts in the public interest by balancing the competing interests of different groups.
Political economy theory: This theory examines the relationship between politics, institutions, and markets. It helps to understand the role of government in a market economy and how it affects the distribution of resources.
Social choice theory: This theory considers how society makes collective decisions, as well as the ethical and normative implications of those decisions. It is useful for understanding how different groups within society are affected by government policy.
Game theory: This theory helps to model the strategic interactions between agents in a given situation. It is useful for understanding how various actors (such as politicians, bureaucrats, and interest groups) pursue their own interests in a political system.
Public goods theory: This theory examines how provision of public goods (such as national defense, education, and healthcare) is affected by the behavior of individuals and groups. It is useful for understanding how government provides these goods and how individuals and groups may try to get benefits without paying their fair share.
Rent-seeking theory: This theory explains how some groups may try to obtain benefits from government policy through lobbying and other strategies. It is useful for understanding how certain economic interests hold disproportionate influence over public policy.
Collective action theory: This theory explains how groups of individuals can come together to achieve a common goal. It is useful for understanding how interest groups organize and mobilize to influence public policy.
Bureaucratic theory: This theory examines how government agencies operate and the incentives that influence their behavior. It is useful for understanding why bureaucracies may behave in ways that are not always in the public interest.
Market failure theory: This theory explains how markets can fail to provide optimal outcomes, leading to inefficiencies and distributional issues. It is useful for understanding why government intervention is sometimes necessary to correct these market failures.
Public choice theory: This theory is a subset of political economy that applies economic analysis to the study of politics. It is useful for understanding the incentives and constraints that influence the behavior of politicians, bureaucrats, and interest groups.
Rational Political Participation Model: This model suggests that people engage in politics to protect their own interests and maximize their benefits.
Bureaucratic Capture Model: This model suggests that bureaucrats use their power to serve their interests, rather than the public interest.
Special Interest Group Model: This model suggests that certain interest groups have more influence over policy-making than others.
Public Service Motivation Model: This model suggests that public officials are motivated to serve the public interest, rather than their own interests.
Regulatory Capture Model: This model suggests that regulatory agencies are subject to the same pressures and influences as other government agencies.
Rent-Seeking Model: This model suggests that people or groups seek to obtain benefits from government policies, rather than producing goods or services.
Public Goods Model: This model suggests that government is necessary to provide public goods, which are goods that are not easily provided by the market.
Negative Externalities Model: This model suggests that government needs to correct market failures caused by negative externalities, which occur when the actions of one person or group damages the interests of others.
Principal-Agent Model: This model suggests that agents (such as politicians or bureaucrats) may not act in the best interests of the principal (such as the electorate or taxpayers).
Information Asymmetry Model: This model suggests that individuals or groups may have access to better information than others, which can lead to market failures that require government intervention.
"The public interest is 'the welfare or well-being of the general public' and society."
"Regulation in this context means the employment of legal instruments (laws and rules) for the implementation of policy objectives."
"Government regulation acts to protect and benefit the public."
"Public interest theory competes for acceptance with public choice and regulatory capture in explaining regulation and its effects on public welfare." Selected quotes from the paragraph: