(redirected from Quasi-Rents)


Income one earns on a sunk cost. A quasi-rent occurs when one makes an investment and pays for it, and then earns income from it without needing to make further investment. In order to be considered quasi-rent, the income must exceed the opportunity cost of the investment.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved


Collins Dictionary of Economics, 4th ed. © C. Pass, B. Lowes, L. Davies 2005
Mentioned in ?
References in periodicals archive ?
In order to prevent such strikes, the firm is willing to share with unionized workers some of the quasi-rents accruing from capital.
At the delivery date, a new machine costs m and has a value in terms of the discounted quasi-rents from its future use given by
In theory, retirement should occur as soon as quasi-rents fall so low that the present discounted value of the remainder is less than scrap value.
In developing the idea of economic repression, and using the Ghanaian cocoa industry as an example, she illustrates how agricultural quasi-rents can be heavily taxed, in the short-run, without too much damage to production but only up to such times as assets need to be replaced, when production can suddenly implode.
The Distribution Constraint is troubling because of the expectation that, although entrepreneurship promotes development, it also generates quasi-rents for selected entrepreneurs and gives rise to intolerable income inequality.
Opportunism can be expected to arise in situations where recurrent transactions and mixed investment can create quasi-rents which facilitate the use of long-term, relational contracting (Smith, p.
.the union may have been playing an end game, extracting as much of the quasi-rents as possible from the industry." Heaping the blame on the policies of those who are now quite clearly the victims of the restructuring of the steel industry seems counterproductive.
As entrepreneurs they will be not merely "maximizing profits" (more accurately, maximizing quasi-rents) as in the theory of the firm in equilibrium markets.
(16) B and S jointly agree to exclusive dealing, intending that a more efficient E will persuade them (or B) to breach, and thus (ex ante) jointly appropriating some of E's efficiency quasi-rents. Aghion and Bolton stress that efficient entry by E is not intentionally blocked (the net externality on B and S of successful entry is positive in their model) but may be inadvertently blocked if B and S try to extract more quasi-rent than there turns out to be.
they are economic quasi-rents that arise in competitive markets because
In the context of the bargaining power model, three types of economic rents may accrue from an MNC bargaining power over host governments: Ricardian rents, Monopolistic rents, and Composite Quasi-rents (Aichian & Woodward, 1988; Castanias & Helfat, 1991; Peteraf, 1993; Rumelt, 1987).

Full browser ?