ARTICLE REVIEW

Article Review

Article Review

Issue

In this article, Author James Surowiecki talks about “Rent seeking”. It is the search for economic rent, by which economists mean the extra return a factor of production makes, compared to the next best convenient return. In a perfect free market, there are no economic rents because if any activity earns a higher return than others, scarce factors of production will flow to it until the return drops back to normal level. In the real world, there are lots of monopolies (natural and artificial) and information asymmetries that create rent. It is saw that it pays a ...