economics ... Related Topics:
rent seeking, competition for politically protected transfers of wealth.
The typical rent-seeking scenario includes an economic rent, or “prize,” and a set of actors that create, capture, and finance the prize. The government creates the prize by setting, for example, a public subsidy, an import license, or a monopoly protected by legal entry barriers. Interest groups struggle to influence the government and thereby capture the prize, a contest that may include lobbying, public-relations campaigns, and bribery of government officials. Unorganized segments of the public complete the rent-seeking picture, for they are the actors from whom resources are extracted to finance the prize, via taxes or higher monopolistic prices.
Economic research on rent seeking has focused on both its causes and its consequences. ...