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: If a business succeeds in getting laws passed to limit their competition or create barriers to entry for others, it can achieve economic rents without any added productivity or capital at risk. Individual Rent Seekers
Individual rent seekers are also able to achieve economic rents when obtaining social service funding. Funds are offered through welfare programs, housing assistance, and Medicaid. Individual rent seekers can use their eligibility status for these programs to obtain funds from the government without any reciprocal contribution. Licensing Requirements
Lobbying for the lessening of occupational licensing requirements is another very specific example of rent seeking. Doctors, dentists, airline pilots, and many other fields require licensing to practice. However, in many U.S. states, this licensing process is expensive and time-consuming. Often, regulations exist due to past lobbying efforts from existing industry members. If certification and license obligations prevent newcomers from competing, fewer professionals may share the revenue. Thus, a more significant portion of money accrues to each existing member without additional economic benefit.