Rent Seeking
Tullock developed a theory referred to as rent-seeking. Rent seeking occurs when a monopolistic firm uses their financial position to lobby politicians in order to create legislation with the intent of increasing their profits. This can lead to moral hazard when politicians make policy decisions based on the lobby instead of the efficiency of the policy.
Tullock also formulated and considered the Tullock paradox, namely, the paradox of why rent-seeking is so cheap.
Read more about this topic: Gordon Tullock
Famous quotes containing the words rent and/or seeking:
“I have been breaking silence these twenty-three years and have hardly made a rent in it.”
—Henry David Thoreau (1817–1862)
“And they write innumerable books; being too vain and distracted for silence: seeking every one after his own elevation, and dodging his emptiness.”
—T.S. (Thomas Stearns)