Rent-Seeking

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Rent-Seeking

The practice of an individual, company, or government attempting to make a profit without making a product, producing wealth, or otherwise contributing to society. For example, a company may seek subsidies from the government, which would count as income for that company. Likewise, a government may seek rent by seizing control of natural resources and charging citizens for use. Some rent seeking is legal, while others, such as some forms of blackmail, are not. Rent-seeking behavior is most common when the rent seeker is also a monopoly or has sufficient economic or political power to act as one. The concept was originated by Adam Smith.
References in periodicals archive ?
The power of judicial review may also be exercised for the eradication of rent seeking behavior and encouragement of foreign direct investment and other economic activities within the country", he added.
The combination of the notion that agents for the school districts engage in rent seeking behavior and the increased costs for heterogeneous groups to engage in collective decision making (reflecting a more diverse set of preferences) support this hypothesis.
This paper tackles a different rent seeking behavior.
This is, according Tullock (1991), rent seeking behavior.
The next section presents some evidence of rent seeking behavior in economics departments in Brazil.
One of the reasons put forward by Farina (2000) to explain the observed low level of academic performance and research commitment was the rent seeking behavior of the academic economists.
On rent seeking behavior by bureaucrats and businessmen in Egypt, see Yahya M.