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QUIZ 2: Q1: Is it realistic to assume, following public interest theory, that regulators will not be driven by their self-in
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Q.1 Yes, it is realisitic to assume that the regulators will not be driven by their self interest when designing regulations since their objective is to work in the interest/ benefit of the society rather than their own vested interest.They are considered to operate and represent the interest of the society (Public) that they represent rather than their own private interest.

In case they don't live up to this assumptions, such actions can be easily picked up because a monitoring authority is usually in place monitoring all such actions. Also if we don't consider this assumptions it becomes very difficult to accept and implement any regulation in a democracy.

Q.2 No, it is not in the public interest for regulators to be driven by their self interest. Since they have a fiduciary duty to work towards the benefit of the society and public. Hence they have to work with integrity and hoensty.

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