The definition of rent seeking is manipulating the political environment to create new wealth for yourself without creating net wealth for society.
The classic example is the owner of a section of river imposing a toll for boats traversing the river. The rent creates value for the owner but exactly the same amount negative value for the rest of society.
A toll for a ferry the owner created would be creating wealth. As would developing a resort there.
Modern examples of rent seeking are usually related to regulatory capture or housing politics.
The classic example is the owner of a section of river imposing a toll for boats traversing the river. The rent creates value for the owner but exactly the same amount negative value for the rest of society.
A toll for a ferry the owner created would be creating wealth. As would developing a resort there.
Modern examples of rent seeking are usually related to regulatory capture or housing politics.