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
Other articles related to "rent, rent seeking, rents":
... In 2011, FreedomWorks ran a number of campaigns targeted at corporate rent-seeking behavior ... campaigned against GE CEO Jeff Immelt who they argue has made GE a rent-seeking corporation ... In addition to their anti-rent seeking campaigns, FreedomWorks has also been active in a number of issue campaigns at the state and national levels ...
... Broadly defined, three types of corruption are common in China graft, rent-seeking, and prebendalism ... Rent-seeking refers to all forms of corrupt behaviour by people with monopolistic power ... through granting a license or monopoly to their clients, get "rents"—additional earnings as a result of a restricted market ...
... Broadly defined, three types of corruption are common in China graft, rent-seeking, and prebendalism ... Rent-seeking refers to all forms of corrupt behaviour by people with monopolistic power ... or monopoly to their clients, get "rents"—additional earnings as a result of a restricted market ...
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