Regulatory economics

Regulatory economics is the application of law by government or regulatory agencies for various economic purposes, including remedying market failure and protecting the environment.

Regulation is generally defined as legislation imposed by a government on individuals and private sector firms in order to regulate and modify economic behaviors. Not all types of regulation are government-mandated, so some professional industries and corporations choose to adopt self-regulating models.

Regulatory capture is a risk to which government agencies are exposed by their very nature.