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.
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References in periodicals archive ?
"The power of judicial review may also be exercised for the eradication of rent seeking behavior and encouragement of foreign direct investment and other economic activities within the country", he added.
Security and such other entitlements are either denied or become inaccessible due to the rent seeking behavior of the states.
Some examples of rent seeking behavior that severely hamper the economic efficiency are illustrated for the case of Romania.
Keywords: transition countries, rent seeking behavior, unproductive activities, clientelism
Next some examples of rent seeking behavior that severely hamper the economic efficiency are explained for the case of Romania, illustrating the conclusions of the mathematical model.
Causes of Rent Seeking Behavior in Transition Countries
This paper tackles a different rent seeking behavior. It examines the scholar's choice between academic work (teaching and research) and external work, such as consultancies.
The next section presents some evidence of rent seeking behavior in economics departments in Brazil.
One of the reasons put forward by Farina (2000) to explain the observed low level of academic performance and research commitment was the rent seeking behavior of the academic economists.
(82.)On rent seeking behavior by bureaucrats and businessmen in Egypt, see Yahya M.