The influence of interest groups on the government decision-making of regulatory policies

Any regulatory policy is formed by two interacting forces - the interest groups who are the demanders for the policy and the government who is the policy supplier. In most researches, people pay too much attentions to the interest groups, but neglect the behaviors of the government. Directing at this weakness, this paper integrates the two forces of demander and supplier together and erects a comprehensive model, through which we find out the decision of regulatory policy is determined by the government comparison between the utilities of equality and the net gains ( or loss)of the interest groups.