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Rent-seeking: Difference between revisions
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===[[Legal eagle]]s as [[rent seeker]]s=== | ===[[Legal eagle]]s as [[rent seeker]]s=== | ||
Rent seeking is at the heart of the [[agency problem]]. An agent wants to advance her [[principal]]’s interests but, above all, she wants to ''remain'' and agent, so she can be ''paid''. If her principal’s best interests are served by ''doing away with this agency arrangement altogether'', you can be sure this proposition will struggle to find voice in the | Rent seeking is at the heart of the [[agency problem]]. An agent wants to advance her [[principal]]’s interests but, above all, she wants to ''remain'' and agent, so she can be ''paid''. If her principal’s best interests are served by ''doing away with this agency arrangement altogether'', you can be sure this proposition will struggle to find voice in the agent’s musings. | ||
For example, take the contract negotiation process. | For example, take the contract negotiation process. | ||
There are a bunch of stakeholders in the contracting process, who like being involved in it and who want to stay involved in it, even though, by the lights of the new model, they | There are a bunch of stakeholders in the contracting process, who like being involved in it and who want to stay involved in it, even though, by the lights of the new model, they don0’1t add any value. Their primary purpose is to extract rent. They have structured themselves into the architecture of their organisations and the market. They don’t want any solution which prevents them extracting rent. It is the agency problem, ''par excellence''. | ||
This is what is so interesting about OneNDA. It may be small and seemingly insignificant in its subject matter, but it strikes at the rent extraction problem as its root. Rather than changing the mode of “service delivery” (for which, read, “mode of rent removal”) or automating, accelerating of marketing more efficient the process of extracting rent, OneNDA has removed all rent altogether. | This is what is so interesting about OneNDA. It may be small and seemingly insignificant in its subject matter, but it strikes at the rent extraction problem as its root. Rather than changing the mode of “service delivery” (for which, read, “mode of rent removal”) or automating, accelerating of marketing more efficient the process of extracting rent, OneNDA has removed all rent altogether. | ||