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: Rent Seeking Definition
Economics Microeconomics
Rent Seeking
By
Christina Majaski
Reviewed by
Full Bio
Michael Boyle is an experienced financial professional with more than 9 years working with financial planning, derivatives, equities, fixed income, project management, and analytics. Article Reviewed on March 25, 2021
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Michael J Boyle
Updated Mar 25, 2021
What Is Rent Seeking? Rent seeking (or rent-seeking) is an economic concept that occurs when an entity seeks to gain added wealth without any reciprocal contribution of productivity. Typically, it revolves around government-funded social services and social service programs. Key Takeaways
Rent seeking is an economic concept that occurs when an entity seeks to gain wealth without any reciprocal contribution of productivity. The term rent in rent seeking is based on the economic definition of “rent,” which is defined as economic wealth obtained through shrewd or potentially manipulative use of resources. An example of rent seeking is when a company lobbies the government for grants, subsidies, or tariff protection. Understanding Rent Seeking
The concept of rent seeking was established in 1967 by Gordon Tullock and later popularized by Anne Krueger in 1974. It evolved from the studies of Adam Smith, who is often regarded as the father of economics, and is based on an economic definition of “rent,” defined as economic wealth obtained through shrewd or potentially manipulative use of resources. Smith's studies suggested that entities earn income from wages, profit, and rent.