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When I think of rent-seeking, I think of mainly lobbying and the use of politics to tap into revenue. For example, Wal Mart going to Congress to get a law passed requiring the reduction of credit card 'swipe' fees. Or a pro-sports team getting a taxpayer-funded stadium.
Interesting OP. When I think of the term, I usually think along these or similar lines, as in economic inefficiency through poor allocation of resources, sortof like an economic opportunity cost. An over-dependence on rent-seeking activities over the long term often leads to unintended (unfavorable) consequences.
The following has an interesting focus in describing rent-seeking, briefly discussing financialization & contains this example, it is perhaps more metaphorical but I happen to like for some reason:
Quote:
The classic example of rent-seeking, according to Robert Shiller, is that of a feudal lord who installs a chain across a river that flows through his land and then hires a collector to charge passing boats a fee (or rent of the section of the river for a few minutes) to lower the chain. There is nothing productive about the chain or the collector. The lord has made no improvements to the river and is helping nobody in any way, directly or indirectly, except himself. All he is doing is finding a way to make money from something that used to be free. If enough lords along the river follow suit, its use may be severely curtailed.
If I rent land to you, and you use that land to create something, then how is that not win-win?
Especially if what you create is in excess of the rent.
Why would you want to?
Renting...
Mircea
Sounds good. How about I charge you some rent for the land you are currently using?
I mean if you want to abuse the term applicable to classical economics , aka "rent seeking", that is most applicable to the term "monopoly income" , then by all means contribute to the chaos since its more fun. However if you actually wanted to communicate something comprehensible then you would not confuse it with the compensation for the superintendence of land management. However when the room is scare, its hardly about the cost of superintendence . There is monopoly income or rent seeking....
Rentier class. aka the bloodsucking leeches of wall street.
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