The public interest hypothesis revisited: A new test of Peltzman's theory of regulation

Abstract

The results of the empirical work support several conclusions. First, the evidence adds additional support to the Peltzman theory of regulation. Nearly all of the variables tested support the hypotheses arising from the theory. Second, the evidence supports the conclusion that the Peltzman theory is preferred to that of the simpler predatory theory of regulatory capture. While the predator's strength is important, it is not always decisive. The public's interest can be and is maintained in many states.