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: In such cases, license requirements make sense – the reasons are obvious. However, there are some markets in the world where an onerous, special license is required if you want to be a florist, taxi drive, or even an interior decorator. Clearly, in those cases, the license requirements are simply barriers to entry – they have nothing to do with protecting the consumer. They are there simply to protect the existing competitors and give them an unfair and uncompetitive advantage. License requirements are often examples of rent-seeking behaviors. If you need to get a time-consuming, expensive, and extremely hard-to-acquire license to become a taxi driver, there will be fewer competitors in that market. If fewer competitors are permitted to operate within that sector, it means that each player gets a bigger slice of the wealth pie. Licensing requirements contribute absolutely nothing to the creation of additional wealth, i.e. the wealth pie does not get any larger because of them. Most closed-shop systems are bad for the consumer. When there is **perfect competition prices are kept low.