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 ?
There is a "trust trap" that impedes a reversal in the growth of rent-seeking government and the decline in trust.
Following his death last November at age 92, others commented extensively on his most recognized contributions to economics: his joint work with James Buchanan on The Calculus of Consent, the rent-seeking model, and the transitional gains trap.
Concentrated, moneyed interests, represented by those in control of the country's largest business corporations, are increasingly able to turn law into a lottery, reducing law's predictability, impairing property rights, and increasing the share of the economy devoted to rent-seeking rather than productive activity.
In Toward a Theory of the Rent-Seeking Society, edited by James M.
The result is a riot of rent-seeking as entrenched interests construe judicial passivity as permission to stifle competition.
The increasing production of shale oil and gas in the United States (US), which has drastically affected US imports of Nigerian crude oil and liquefied natural gas (LNG), will ultimately transform the economy of Nigeria from rent-seeking, rent-sharing, and hard-currency driven economy to a value added prone economy, said Wumi Iledare, president of International Association for Energy Economics (IAEE).
The banking system is in a critical situation, bordering alarm," Vice President Jahangiri said, blaming the rise in bad debt on an "upsurge in rent-seeking," a major bugaboo in Iran.
A few reasons of particular vulnerability for commodity-dependent economies should be mentioned when it comes to rent-seeking.
It has also been argued that an increase in government size creates more opportunity for rent-seeking and corruption (see, e.
To capture this notion, we redefine production function specified in Equation (1) by including rent-seeking activities that act as a distortion in the production process.
Since its founding in 1887 as Chimera Global Holdings, the company has been recognized as a trailblazing pioneer in the fields of regulatory capture and rent-seeking.
Dr Wilson said that economics and competition literature talk about the behaviour of market players, that is, buyers and sellers; the elements of cartelisation; possibility of a refusal to deal on unnecessary grounds; the possibility of rent-seeking by a monopolist or dominant players.