22 Pages Posted: 4 Feb 2015 Last revised: 7 Mar 2015
Date Written: February 3, 2015
Regulation by the state can benefit or harm any business in society. While the market provides for consumers rather than special interests, rationally acting interests will be incentivized to use political means to capture rents, particularly if public clamor for regulation exists. The formation of the Federal Trade Commission, rather than providing a check on business interests, follows the pattern of regulatory capture. The National Civic Federation, a group with strong business interest ties, was crucial to ensuring this outcome at the commission’s founding.
Keywords: Regulatory Capture, National Civic Federation, Federal Trade Commission, Regulation, Interventionism
JEL Classification: G38, N41, N42, P16
Suggested Citation: Suggested Citation
Boettke, Peter J. and Duncan, Thomas K. and Snow, Nicholas A., Competition for Antitrust: The National Civic Federation and the Founding of the FTC (February 3, 2015). GMU Working Paper in Economics No. 15-16. Available at SSRN: https://ssrn.com/abstract=2559755 or http://dx.doi.org/10.2139/ssrn.2559755