the theory of public interest regulation prevailed up to the 1960s until public choice theory launched its critical attack on established theory. while there is no pointed origin or categorical articulation of this theory, its notions can be traced back to works of arthur cecil pigou; related to his analysis of externalities and welfare economics. this theory was prevalent, especially during the new deal progressive era, as stated above, starting the 1960s, economists of the chicago school began critiquing the assumption of benevolent regulators, proposing counter theories, like the public choice theory, which is based on personal-interests of agents.