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: Rent-seeking - Definition, Common Examples, and Tullok Paradox
Rent-seeking
What is Rent-seeking? Rent-seeking is a concept in economics that states that an individual or an entity seeks to increase their own wealth without creating any benefits or wealth to the society. Rent-seeking activities aim to obtain financial gains and benefits through the manipulation of the distribution of economic resources
Gross National Product Gross National Product (GNP) is a measure of the value of all goods and services produced by a country’s residents and businesses. It
. Economists view such activities as detrimental to the economy and society. The practice reduces economic efficiency through the inefficient allocation of resources. Also, it commonly leads to other damaging consequences, including a rise in income inequality, lost government revenues, and a decrease in competition
Barriers to Entry Barriers to entry are the obstacles or hindrances that make it difficult for new companies to enter a given market. These may include
. Rent-seeking doesn’t tend to increase productivity in the economy. On the other hand, it can be an easier alternative to production for the purpose of obtaining financial benefits.