Total Posts:6|Showing Posts:1-6
Jump to topic:

Rent Seeking

Wallstreetatheist
Posts: 7,132
Add as Friend
Challenge to a Debate
Send a Message
4/23/2013 1:52:21 PM
Posted: 3 years ago
When people compete for grants, subsidies, and other government handouts, economists see a phenomenon called rent seeking. The "rent" is the money being offered. When government gives money away, the people who compete for it incur costs--sometimes more money will be spent in total trying to compete for a grant than the amount of money being given away. These costs are rarely considered in policymaking, but perhaps they should be. One major cost of rent seeking, as Prof. Michael Munger points out, may be that the government awards money to organizations with the best lobbyists, not necessarily those providing the best services.

http://www.youtube.com...
DRUG HARM: http://imgur.com...
Primal Diet. Lifting. Reading. Psychedelics. Cold-Approach Pickup. Music.
darkkermit
Posts: 11,204
Add as Friend
Challenge to a Debate
Send a Message
4/24/2013 9:54:08 AM
Posted: 3 years ago
From MarginalRevolutionUniversity they had some interesting model on rent-seeking behavior in their economic development class.

The model uses three scenarios. Either one can be a rent-seeker, producer, or subsistence farmer. There's conditions in which there are two possible equilbiruims, with one equilibrium as a very poor condition and one equilibrium as a more positive one. The bad equilibrium being in which most people end up as subsistence framers and rent-seekers have very little they can exploit anyhow.
Open borders debate:
http://www.debate.org...
pozessed
Posts: 1,034
Add as Friend
Challenge to a Debate
Send a Message
4/25/2013 11:58:31 AM
Posted: 3 years ago
At 4/23/2013 1:52:21 PM, Wallstreetatheist wrote:
When people compete for grants, subsidies, and other government handouts, economists see a phenomenon called rent seeking. The "rent" is the money being offered. When government gives money away, the people who compete for it incur costs--sometimes more money will be spent in total trying to compete for a grant than the amount of money being given away. These costs are rarely considered in policymaking, but perhaps they should be. One major cost of rent seeking, as Prof. Michael Munger points out, may be that the government awards money to organizations with the best lobbyists, not necessarily those providing the best services.

http://www.youtube.com...

Thank you, that was very informative.

I don't think asking people to compete is the problem, I think it's how we ask them to compete.
Instead of writing an essay the student could be doing something to benefit his school or the scholarship giver as to be more cost worthy with their time.

The scholarship could also ask to write an essay on something that would require a lot of research and possibly be beneficial to all mankind. Like "how would you set up a colony on mars or the moon?"
If 2000 people apply that's 2000 chances that someone might think of something practically new to embark on.