Stigler's economic theory of regulation can be understood through a thought experiment: imagine auctioning a political decision off to the highest bidder on the steps of the capitol, which forces you to identify who has a stake in a regulation and who would lobby for it.

definitionpending

Speaker

Bruce Yandle

Evidence Quote

let's just perform a a mental experiment when the politian is wrestling with a decision well let's just go out on the steps of the capital and auction the decision off to the high B... it forc you to think about who has a stake in this regulation and who would want to speak speak up

Source

Bruce Yandle on Bootleggers and BaptistsAnkeborgsAnkdamm
Created: 6/15/2026, 9:20:30 AM

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