Revolving Door

The movement of personnel between regulatory bodies and the industries they regulate, creating conflicts of interest that compromise regulatory independence. A regulator who plans to work for the industry they oversee has incentives to be lenient; an industry executive who becomes a regulator brings implicit biases toward their former employer. The revolving door is a structural mechanism for regulatory capture—the process by which regulations serve the regulated rather than the public.

When to use it

When entering regulated industries and trying to understand why rules seem designed for incumbents; when lobbying or advocacy decisions need context; when evaluating whether regulations genuinely serve public interest or industry interest.

How it can help

Explains why regulations often favor incumbents over innovators. When evaluating any regulatory environment, map the revolving door: who wrote the rules, and where did they come from? This model reveals hidden power dynamics in any industry with significant regulation. For entrepreneurs, it explains why compliance costs disproportionately burden small players—regulations designed by industry insiders optimize for incumbent capabilities.