| Abstract: | The effectiveness of regulations is reduced by inspector capture. An environment conducive to capture is one in which inspectors must compete for business. This type of competition is found in various regulatory contexts; it is a fundamental characteristic of a decentralized motor vehicle inspection network.
Motor vehicle inspection stations in most localities are numerous, geographically dispersed, private, and hence largely outside the effective purview of state authorities. Motorists can choose their inspection station, and generally prefer quick, superficial and passing inspections. Motor vehicle inspectors therefore tend to be quite lax. Evidence is presented showing that the most lenient ones tend to get more of the inspection business. |
