Rent-seeking

Rent-seeking is the effort to increase one's share of existing wealth without creating new wealth.[1] Rent-seeking results in reduced economic efficiency through misallocation of resources, reduced wealth-creation, lost government revenue, heightened income inequality,[2] and potential national decline.

Attempts at capture of regulatory agencies to gain a coercive monopoly can result in advantages for rent-seekers in a market while imposing disadvantages on their uncorrupt competitors. This is one of many possible forms of rent-seeking behavior.


Share this article:

This article uses material from the Wikipedia article Rent-seeking, and is written by contributors. Text is available under a CC BY-SA 4.0 International License; additional terms may apply. Images, videos and audio are available under their respective licenses.