Economic rents


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Economic rents

Profits in excess of the competitive level.

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.
References in periodicals archive ?
These results support the idea of a nonbenevolent government enacting inefficient regulation to create economic rents.
95) Increased economic rents for the public are generally unevenly
Under specific taxation, a revenue maximizing government will tend to employ a lump-sum tax on the producer that is equal to his entire monopoly profits--effectively transferring all rents from the producer, whereas under an ad valorem tax, the monopolist will still retain some economic rents due to the imperfect tax mechanism.
The economic rents are the normalized rents adjusted for changes in quality.
However, some economic rents are high not simply because of manipulation and the bad behaviour of economic agents but arise from low competition (free entrants) into sectors of relative low cost and high returns.
Pure economic rent is earned when quantity is fixed and the factor has no other uses.
From each rental unit in the sample, information on the economic rent and on the pure rent is collected.
These connections enable them to access streams of economic rents, primarily through the concessions they win to engage in otherwise-restricted economic activity.
They also depend on economic rents or Russian derivatives rather than adding value themselves - Ukraine makes profits from gas transit, Belarus from oil refining.
If teachers have been able to appropriate a share of the economic rents generated by the market power of school districts, then increased competition could lower teacher salaries.
The sources of economic rents and maintenance of competitive advantage have received considerable attention in the economic literature for years, just to mention the works by Penrose (1959), Porter (1980) or Slater (1996).
The current pricing policy in Mexico is now imputing these economic rents to the gas produced at Ciudad Pemex.

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