> Businesses have absolutely zero incentive to say that regulations are not bad.
Your overall point is solid, but I'd like to what I think is another reason that businesses could desire regulation. You're right that a dominant business can use its political power to "regulatory capture" its market and prevent new entrants, but I believe this isn't limited to uncompetitive markets.
Regulation can also prevent "arms races" by acting like explicit collusion. A straightforward example is competitive advertising in a saturated market, like cigarettes. Under the rough assumption that cigarettes are all equivalent and most potential smokers already smoke, then competitve advertising cuts into the profit margin, and companies have to participate or lose out. If you ban advertising then it's as if the bosses all got together and agreed not to compete like that. See e.g. https://pubmed.ncbi.nlm.nih.gov/31547234/
Your overall point is solid, but I'd like to what I think is another reason that businesses could desire regulation. You're right that a dominant business can use its political power to "regulatory capture" its market and prevent new entrants, but I believe this isn't limited to uncompetitive markets.
Regulation can also prevent "arms races" by acting like explicit collusion. A straightforward example is competitive advertising in a saturated market, like cigarettes. Under the rough assumption that cigarettes are all equivalent and most potential smokers already smoke, then competitve advertising cuts into the profit margin, and companies have to participate or lose out. If you ban advertising then it's as if the bosses all got together and agreed not to compete like that. See e.g. https://pubmed.ncbi.nlm.nih.gov/31547234/