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 ?
Most countries protect their industry (and agriculture), while making sure that the protection does not convert to rent seeking through monopolies and cartelization.
Again drawing on his experiences "in the belly of the beast," Bob naturally turned his attention to Gordon Tullock's insights on rent seeking and to existing public-choice theories of bureaucracy, embellished by overt political influences on the FTC and the U.
Well in our country even this level of rising inequality may bring any number of problems with rent seeking behaviour in particular being highlighted.
In contrast, the large literature on rent seeking beginning with the seminal paper by Tullock (1967), and continuing with the contributions of Krueger (1974) and Posner (1975), explains how interest groups will expend resources to capture the economic rents created by government policies.
Ibrahim Qureshi said that the existing tax structure discourages investment and encourages rent seeking.
Under this framework he analyses state-business relations and rent seeking, extra-parliamentary rulemaking, and the problems of land acquisition, providing a deeper view of the political environment in which private investors operate in Indonesia.
According to Minister Mekuria Haile the deal would be helpful in using public and government land suitably and addressing rent seeking problem in the sector.
For rent seeking in either of those two senses would be entirely justified under the libertarian code.
The first part of the book contains two chapters on the nature of rent seeking and rent seeking as political economy.
have discretionary powers and by virtue of such discretionary powers, an economy has huge potential for rent seeking.
Ibrahim Mu'Azu, director of Corporate Communications at the central bank, said, 'The apex bank noted that the wide gap between the official and interbank value of the naira had engendered undesirable practices, including round tripping, speculative demand, rent seeking, spurious demand and inefficient use of scarce foreign exchange resources by economic agents.
This pastime is not baseball but rent seeking -- the unseemly yet uninhibited scramble of private interests to bend government power for their benefit.