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Hmm. 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 decidi
by branchless 10y ago
Hmm. 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.