Question

Can you give an example of a company who has participated in rent seeking behaviour?

Answer 1

Rent seeking is a concept where a company or an individual tries to get profit with the notion of implying services and its resources to the consumers but they never do it and there will be no use for the society instead the rent seeking never creates new wealth but it increases its own share of wealth in the form of rent.

There are some companies that participated in the rent seeking business by lobbying the government in the form of subsidies,tax cuts and with the providing infrastructure.in India as part of economic reforms the government offered several policies that benefitted the companies such Emerald ,reliance oil refineries in early 1990s .