"Regulatory capture" does not mean "the concept of big businesses owning regulators". It is, rather, a specific proposed explanation for why this takes place, and why it is likely to take place: namely, people working for and invested in a regulated industry have a greater interest in the outcome of regulation than other citizens do, and therefore are likely to expend more effort to influence the regulators.
Notably, regulatory capture does not explain "big business owning regulators" in terms of the members of either big business or regulatory agencies being unusually selfish, evil, or corrupt individuals. It predicts that you can't fix regulation by installing more honest or virtuous regulators, because the problem is structural rather than personal.
Here's an example:
I, as a human citizen who likes breathing air without radioactive soot in it, have an interest in shutting down coal-fired power plants. However, the magnitude of my interest in shutting them down is much less than the magnitude of a coal plant employee (especially a well-paid one who is also a shareholder!) in keeping that plant running. Coal soot slightly increases my chance of lung cancer ... but shutting down coal plants puts those people out of a job, which is much worse for them than the delta in lung cancer probability is for me. Therefore, any given "coal person" can be expected to spend much more effort on influencing regulators than I will. And if influence is proportional to effort, this means the EPA will tend to favor the views of the coal people and not my views.
However, that said, regulatory capture is part of a broader theory in political economy called public choice theory. And public choice theory has been criticized as not being very predictive; of not having very much in the way of empirical success. Beware the mind-killers, especially when they agree with you!
http://en.wikipedia.org/wiki/Regulatory_capture
http://en.wikipedia.org/wiki/Public_choice_theory#Criticism
"Regulatory capture" does not mean "the concept of big businesses owning regulators". It is, rather, a specific proposed explanation for why this takes place, and why it is likely to take place: namely, people working for and invested in a regulated industry have a greater interest in the outcome of regulation than other citizens do, and therefore are likely to expend more effort to influence the regulators.
That's not how I was using the term. I was using it as a label for a fact - that over time, the industry being regulated by an a...
A response essay written by Eliezer Yudkowsky posted at Cato Unbound for the issue Brain, Belief, and Politics:
Is That Your True Rejection? by Eliezer Yudkowsky
The lead essay has been written by Michael Shermer:
Liberty and Science by Michael Shermer