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economic rent

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Economic Rents
1. Profits in excess of what the market would otherwise command. A company can receive economic rents if it is a monopoly, or if it is part of a cartel. See also: Rent-seeking behavior.

2. The amount of money the owner of a property can reasonably demand in order to rent that property.

economic rent
The rent reasonably to be anticipated in the marketplace as opposed to the actual rent.For an investor familiar with economic rents in an area,there are usually many opportunities to buy properties at values based on contract rents,and then raise the rents and realize immediate growth in equity and the ability to refinance for amounts in excess of the original purchase price. Also called market rent.


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Birdsall and Subramanian (2004) add that when considering the effect of the resource curse on institutions it is helpful to consider economic rents rather than revenues.
In his 1879 book Progress and Poverty, Henry George in the USA made the argument that "a sizeable portion of the wealth created by social and technological advances in a free market economy is captured by land owners and monopolists via economic rents, and that this concentration of unearned wealth is the root cause of poverty.
In their view, the sales process itself can result in policyholders paying a higher price, which generates economic rent and, therefore, a gain at issue for the insurer.
 
 
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