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Rent-seeking: Difference between revisions
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{{a|devil|}} | {{a|devil|}}{{d|Rent-seeking|/rɛnt ˈsiːkɪŋ/|n|}} | ||
The extraction of payment by one (a “[[rentier]]” or in the JC’s own phrase, a “[[rentsmith]]”) from those who pass by, for the simple privilege of crossing one’s turf, whether they are transgressing one’s [[real property]] — that’s the classic notion of “rent” — [[personal property]] — unusual, but renting a car, or skis — or [[intellectual property]] — and this is where the real monkey business happens. | |||
Rent-seeking only becomes problematic where there are conditions of monopoly. Since few landlords or rental companies have monopoly positions, it doesn’t tend to present a problem here. Since [[intellectual property]] is more or less a state-sanctioned form of monopoly, this is where the problems arise. | |||
For such an important concept — it is really hard to understand our piebald world without it — it is very hard to pin down. | |||
It comes in many guises: | It comes in many guises: | ||
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*'''[[Franchising]]''': Taking an idea or a business model someone else has invented — McDonald’s is the best example — and paying them a franchise fee to operate it. Here is ''double'' rent-seeking: the franchisee pays the franchisor, and the customer pays the ''franchisee''. | *'''[[Franchising]]''': Taking an idea or a business model someone else has invented — McDonald’s is the best example — and paying them a franchise fee to operate it. Here is ''double'' rent-seeking: the franchisee pays the franchisor, and the customer pays the ''franchisee''. | ||
*'''[[Software as a service]]:''' The simple answer to the question [[why is reg tech so disappointing?]] — is that tech businesses can’t make money if all they get paid for is writing software. This would be like Mick Jagger only getting paid for fifteen minutes’ work — where is the logic, or the justice in that?<ref>Irony alert.</ref> | *'''[[Software as a service]]:''' The simple answer to the question [[why is reg tech so disappointing?]] — is that tech businesses can’t make money if all they get paid for is writing software. This would be like Mick Jagger only getting paid for fifteen minutes’ work — where is the logic, or the justice in that?<ref>Irony alert.</ref> | ||
*'''[[Regulatory rent-seeking]]''': A regulatory fine for some impermissible behaviour which, while significant, pales into insignificance with the value accrued to the miscreant who carries out the behaviour, such that it suits both of them to carry on with the activity. Where the time don’t match the crime. | *'''[[Regulatory rent-seeking]]''': A regulatory fine for some impermissible behaviour which, while significant, pales into insignificance with the value accrued to the miscreant who carries out the behaviour, such that it suits both of them to carry on with the activity. Where the time don’t match the crime. | ||
===[[Legal eagle]]s as [[rent seeker]]s=== | ===[[Legal eagle]]s as [[rent seeker]]s=== | ||
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*[[Intermediaries]] | *[[Intermediaries]] | ||
{{ref}} | {{ref}} | ||
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