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 ?
We bring many of these findings together in a unifying framework regarding trust, reciprocity, and cooperation; social capital and productivity; and rent seeking and political economy/public choice to understand equilibria and interactions among them.
Assets declaration and analysis system, code of Conduct, charter of duties/ responsibilities, establishment of website to make department approachable and public friendly, one window service for public and awareness through display of procedures and rules, recruitment and promotion policies, extensive use of IT for transparency to reduce the gap in rent seeking, revision of schedule rates, enlistment process of contractors, education and training on KPPPRA and Provincial Procurement Rules and adherence, transparency in tendering process, external audit and setting of audit objections, redressal of grievance system, quality control and assurance in projects and standardization of quality procurement as per rules.
When successful, rent seeking transfers wealth from one person to another, but more importantly, it represents a net wasteful investment in overall welfare, since one person's gain is another's loss, and the exercise of transferring wealth requires resources.
His most important achievements, as I see it, are the establishment of three fields of study that are today unimaginable without his contributions: (1) analysis of non-market institutions ranging from bureaucratic agencies to military discipline; (2) rent seeking and contests, including the "Tullock Contest"; and (3) bioeconomics.
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.
According to Meles' speech, there are three key where administrative malpractice, rent seeking and corruption are widespread, including public procurement.
This pastime is not baseball but rent seeking -- the unseemly yet uninhibited scramble of private interests to bend government power for their benefit.
Rent seeking is spending wealth on political lobbying to increase one's share of existing wealth without creating new wealth.
The first volume contains seminal papers on the economic analysis of organizations that establish the basis of rent seeking theory, property rights theory, incentives systems theory, adaptation theory, behavioral theory, boundaries, and strategic management.
That is, government spending gives rise to corruption and rent seeking, which feeds back by distorting the structure and size of government spending.
The theoretical model predicts that rent seeking activities decrease as institutional quality improves, and hence income increases and vice versa.
Sharif should ensure merit, forbid delays, leakages, rent seeking and misappropriated to make the plan an inspiration for other provinces.