[bradleyjg]

Regulatory capture can take the form of outright corruption, but the more insidious form is cognitive capture. That's where the regulators simply don't have a sufficiently detached perspective from those they are regulating. They internalize the needs and thought patterns of the industry as there own.

A related phenomenon in foreign affairs circles is called "going native".

[redblacktree]

That's very interesting. It's easy to imagine how, as a regulator, going out to dinner with the regulated (or their representatives) on a regular basis would influence your thinking. It doesn't require a conspiracy theory, so it gives us a great jumping-off point for a rational discussion about how to limit the opportunity for this phenomenon to manifest. Thanks for the new viewpoint!