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Rent-seeking

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Definition Edit

Rent-seeking is the opportunity to capture monopoly rents that provides firms with an incentive to use scarce resources to secure the right to become a monopolist.

Overview Edit

Rent-seeking is normally associated with expenditures designed to persuade governments to impose regulations which create monopolies. Examples are entry restrictions and import controls. However, rent-seeking may also refer to expenditures to create private monopolies.

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