Regulation Theory is a framework used to understand how governments and institutions manage economic activities and social behaviors. It focuses on the rules, norms, and practices that shape the interactions between various actors in the economy, including businesses, consumers, and the state. The theory examines how these regulations can stabilize or destabilize economic systems. The theory also explores the role of political institutions and social movements in influencing regulatory frameworks. By analyzing the dynamics of power and governance, Regulation Theory helps to explain how different economic models, such as capitalism and socialism, adapt to changing social and economic conditions.