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That is why I worded my comment carefully and called it selling at an inflated price instead of rent-seeking. As far as I can tell definitions vary and at least
by danbruc 10y ago
That is why I worded my comment carefully and called it selling at an inflated price instead of rent-seeking. As far as I can tell definitions vary and at least some only call it rent-seeking if the state is involved in one way or another.
If you take the definition Wikipedia currently gives, [...] seeking to increase one's share of existing wealth without creating new wealth [...], then you are looking at a very broad definition that also includes selling at inflated prices, at least that would be my interpretation.
- branchless 10y agoHmm. I wouldn't take selling at inflated prices as rent seeking. It's just a market inefficiency on the surface which may be efficient were we the person deciding not to replicate it. I'd look to the reason behind the ability to sell at inflated prices before knowing which side this falls on.
- danbruc 10y agoI think I agree, the definition from Wikipedia seems overly broad and goes far beyond what the term was initially coined for. But if you are using this definition, then inflated prices would probably fall under it because it does not make any reference to motives or means. Whether it is any good to broaden the definition in this way is certainly a matter of debate.
- wycx 10y agoIsn't the market inefficiency to which you refer merely all market participants choosing to sell at inflated prices? In what scenario would universally inflated prices not be rent seeking? Erecting artificial regulatory barriers via lobbying? Rent-seeking. Collusion between market participants to keep the price significantly above the cost of production? Rent-seeking.
- branchless 10y agoI put that above.