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Rent-Seeking
(redirected from Rent-Seeking Behavior)

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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.


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This may be the result or rent-seeking behavior by school officials, or a way for the school to reduce the price local price while still increasing the bundles of services offered.
However, since we are holding expenditure per beneficiary constant, we are observing either the effects of a possible shift of Medicaid dollars away from prenatal care to other categories (unobservable) or because of the fall in the shadow price of the Medicaid dollar and the resulting efforts at acquiring more such aid, we are observing the impact of such rent-seeking behavior in terms of lost efficiency.
In order to counter the conflict- producing patterns caused by these different levels of rent-seeking behavior, it is necessary to understand the influence of the key features of oil--its strategic value, capital intensity, depletability, and price volatility--all of which the editors suggest can be turned into potential benefits for conflict mitigation.
 
 
 
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