DEFINITION of 'Rent-Seeking'

When a company, organization or individual uses their resources to obtain an economic gain from others without reciprocating any benefits back to society through wealth creation.

BREAKING DOWN 'Rent-Seeking'

An example of rent-seeking is when a company lobbies the government for loan subsidies, grants or tariff protection. These activities don't create any benefit for society, they just redistribute resources from the taxpayers to the special-interest group.

  1. Economy

    Economy is the large set of inter-related economic production ...
  2. Tariff

    A tax imposed on imported goods and services. Tariffs are used ...
  3. Market Value Added - MVA

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  4. Protectionism

    Government actions and policies that restrict or restrain international ...
  5. Wealth Added Index - WAI

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  6. Equilibrium

    The state in which market supply and demand balance each other ...
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