Rent seeking

Published - May 02, 2017 12:05 am IST

Political economy

Rent seeking is a type of economic behaviour, typically found in a climate of uncertain or weak property rights enforcement, wherein certain actors seek to appropriate the wealth of others without creating any new wealth. Rent-seeking behaviour applies to a variety of situations, from piracy on the high seas to lobbying governments for favourable policies. The incentive to undertake rent-seeking efforts is weak when an economy is strong because productive activities are highly lucrative. During times of economic stress, the net benefit of cornering the surpluses of others goes up.

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