What is Rent Seeking?
- Rent-seeking is using political influence to increase one’s economic profits at the expense of others.
How Do I Remember It?
- Think of rent-seeking as “seeking economic gain” without creating value. It’s like trying to get a larger share of wealth by manipulating the system or using political influence, rather than through productive or innovative activities.
Real World Example
- An example of rent-seeking behavior is when a company lobbies the government to pass laws or regulations that give it an unfair advantage over its competitors. This could include obtaining subsidies, tariffs, or regulations that limit competition, allowing the company to increase its profits at the expense of consumers or other businesses.
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By: Ryan Aquino
