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: ** A Zero-Sum Game is a business situation or game in which there is one winner and one loser. The winner’s gain is equivalent to the loser’s total loss – hence the term ‘zero-sum’. If one individual uses the resources of another person, organization, company or any entity to obtain economic gain – to make himself or herself richer – but does not reciprocate any benefits to society through the creation of new wealth, he or she is rent-seeking. A good example of rent-seeking behavior is when the mob shakes down local businesses, insisting they pay for ‘protection’. Rent-seeking behaviors of lobbying
When a commercial enterprise lobbies the national government for tariff protection ( levy taxes on imports ), loan subsidies, or grants – things that do not create any benefit for the nation – it is rent-seeking. The strategy or activity creates no extra wealth, but the company gets richer, and the taxpayer has to foot the bill. Imagine you are the head of a company and succeed in getting subsidies or persuading the government to introduce legislation that limits competition and makes it much more difficult for new competitors to enter your market – barriers to entry – you have managed to grow your share of current total wealth in that sector without adding anything to make that market bigger – you have been involved in rent-seeking behavior. Apart from earning income without creating any additional wealth, you have not put any of your capital at risk either. Rent-seeking licensing rackets
Any market sector or profession where there is a closed-shop system, rent-seeking exists. A closed shop is any area of activity that is restricted to a particular small group.