Legal Definitions - rent-seeking

Definition: Rent-seeking is an economic behavior where individuals or companies try to overproduce goods to earn more profit than the cost of production. This term is commonly used in the field of law and economics.

Examples:

• A company lobbying the government to pass laws that benefit their business, even if it harms the public interest.
• A landlord charging a higher rent than the market rate for their property, taking advantage of the high demand for housing in the area.
• A farmer growing crops that are in high demand, even if it means using more resources than necessary, to earn a higher profit.

These examples illustrate rent-seeking behavior because the individuals or companies are trying to earn more profit than what is fair or reasonable. They are taking advantage of a situation to maximize their own gain, even if it means harming others or the environment.