Title: Rent-seeking - Definition, Common Examples, and Tullok Paradox
Headings: Rent-seeking
Rent-seeking
What is Rent-seeking?
Origins of Rent-seeking
The Tullock Paradox
Examples of Rent-seeking Activities
Related Readings

Content: The practice can be especially favorable during economic slowdowns or recessions
Deflation Deflation is a decrease in the general price level of goods and services. Put another way, deflation is negative inflation. When it occurs,
when companies cannot easily increase production. Also, it is commonly viewed that rent-seeking activities discourage innovation. Instead of developing new innovative methods for revenue generation, companies may rely on the practice to increase their own wealth. Origins of Rent-seeking
The concept of rent-seeking was developed by American economist Gordon Tullock in 1967. However, the term was offered by another economist, Anne Krueger. In this case, the term “rent” is referred to as one of the sources of income generation that was conceptualized by Adam Smith. According to Smith, rent is an activity of lending one’s own resources in exchange for some benefits. Relative to other sources of income (profit, wages), rent is the least risky and the least labor-demanding source of income.