Title: Rent Seeking Definition
Headings: Rent Seeking
Rent Seeking
What Is Rent Seeking?
Key Takeaways
Understanding Rent Seeking
Rent Seeking Factors and Examples
Business Rent Seekers
Individual Rent Seekers
Licensing Requirements
Issues Arising from Rent Seeking

Content: To create profit usually requires the risk of capital with the goal of gaining a return. Earning wages comes from employment. However, of the three income sources, rent is the easiest to obtain and can require little risk. Economic rent is the income earned from the utilization of resource ownership. Entities that own resources can lend them to earn interest rents, lease them to earn rental income, or they may utilize their resources in other income-producing ways. In general, the term economic rent has evolved to mean receiving a payment that exceeds the costs involved in the associated resource. Entities, therefore, will take rent seeking steps to obtain economic rent that requires no reciprocal contribution of production. Oftentimes, this can mean using a particular status to gain economic rent from the government through social service grants. Rent Seeking Factors and Examples
Rent seeking is a byproduct of political legislation and government funding. Politicians decide the laws, regulations, and funding allocations that govern industries and government subsidy distributions.