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 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. 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.