
I. Introduction
The real world is complex, and mostly beyond human comprehension. Even the simplest phenomena like birds flying in geometrically-shaped flocks, or termites coordinating to build castles matching the best of human architecture perplexes us, exposing the limitations of our cognition. And yet, we have evolved mechanisms to make sense of this complexity by interpreting reality through conceptual lenses. This blog explores how that same cognitive tendency plays out in the world of regulation: how the lenses that regulators use to understand the world shape what they see, what they miss, and how well they work together. It argues that when regulatory institutions develop divergent worldviews, governance fragments, learning stalls, and policy coherence suffers.
The tasks that regulators perform require them to not only make rules and ensure compliance, but also analyse, interpret and keep track of reality in some way or the other. Every regulatory agency, whether it’s a financial regulator, a competition authority, or an environmental regulator, operates with a certain lens (also see this) to understand reality, identify the issues it is dealing with, and filter out the plethora of extra irrelevant information that could be noise. This underlying lens shapes what the agency notices, what it prioritizes as a risk or harm, and how it decides what counts as evidence. One of the phrases used to comprehensively denote it is ‘regulatory episteme’, building on Foucault’s notion of the episteme, loosely understood as the set of assumptions, rules, and practices that govern how knowledge is organized and validated in a given situation (see this, this, and this). This way of knowing, the regulatory episteme, runs deep and quietly in the background and is built up over years by legal mandates, economic theories, past experiences, and even the professional background of its staff. Similar to a grammar that guides a language and its structure/meaning, regulatory episteme in a regulatory institution is mostly implicit, but it determines how the regulator functions and decides.
Crucially, the regulatory episteme of a regulator influences what evidence is considered credible. A competition authority might lean heavily on economic data and complex market models to decide if a merger harms consumers, reflecting an episteme that values quantitative, effects-based analysis. In contrast, a consumer protection agency might give more weight to individual complaints and testimonies, driven by an episteme attuned to personal harm and fairness. Each regulator operates inside its own cognitive universe, employing theoretical and methodological lenses that prioritises some signals loud and clear while filtering out others, all according to its ingrained worldview

