Title: What is rent-seeking? Definition and meaning - Market Business News
Headings: What is rent-seeking? Definition and meaning
What is rent-seeking? Definition and meaning
Rent-seeking behaviors of lobbying
Rent-seeking licensing rackets
Rent-seeking in government
Video – Rent-Seeking – Definition and Meaning

Content: If you need to get a time-consuming, expensive, and extremely hard-to-acquire license to become a taxi driver, there will be fewer competitors in that market. If fewer competitors are permitted to operate within that sector, it means that each player gets a bigger slice of the wealth pie. Licensing requirements contribute absolutely nothing to the creation of additional wealth, i.e. the wealth pie does not get any larger because of them. Most closed-shop systems are bad for the consumer. When there is **perfect competition prices are kept low. When there is a lack of competition – imperfect competition – and rent-seeking behaviors are rife, prices remain high. ** Perfect competition does not exist in any country – it is a theoretical free-market Utopia where there are lots of sellers and buyers, none of whom is able to have any significant impact on the prices of products or services. All the suppliers and consumers seek to maximize their profit (income). Rent-seeking in government
Corruption among public officials (civil servants) and politicians is also within the notion of rent-seeking. While corruption in government is higher in some countries than others, no nation on Earth is completely free of it.