Final answer:
The criticism that regulation lowers prices is inaccurate; instead, issues like regulatory capture where firms influence the making of regulations can keep prices high. Instances such as within the airline industry exemplify such concerns. Deregulation in the 1970s showed that price regulations were not beneficial.
Step-by-step explanation:
The criticism of regulation that does NOT align with the common concerns is the notion that it lowers prices. In fact, one notable issue with government price regulation known as regulatory capture explains a situation where firms being regulated heavily influence the setting of regulations that they should follow. This may lead to regulations that allow existing competitors to work together to reduce output, keep prices high, and hinder competition, rather than lowering prices.
An example of regulatory capture occurred during the regulation of the airline industry, where airlines influenced the regulatory board, provided information for decision-making, and even offered jobs to board members. This can result in poor representation of consumers' interests.
Deregulation experiments starting in the 1970s revealed that price regulation was not working well, prompting the removal of government controls over prices and quantities in various industries, including airlines, leading to a shift in market dynamics.