
Ep 419: Eli Dourado - Senior Research Fellow, The Center for Growth and Opportunity
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Regulatory Capture and Misdirection in the Aviation Industry
The development of quieter subsonic planes saw fuel efficiency and noise reduction improved together, without much resistance. However, when it came to supersonic planes, European regulators used noise as an excuse to protect their own industries from American startups pursuing supersonic technology. This phenomenon, known as regulatory capture, highlights how incumbents create artificial barriers to maintain their dominance. The misdirection employed by regulators to achieve their goals does not have a specific term, but it serves as a lesson applicable to various topics beyond aviation.
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