Your point seems to be that rent seeking only happens when a market is distorted. That’s a tautology not and argument.

- Greg

Sorry, but I didn’t ask any questions about “developing markets,” but I’m pretty certain that not all “developing markets” are mafia driven.

My major point, however, was stated in my preceding comment (repeated here for clarity: “Only by coercion (as in blood diamonds) or through government intervention (as in the telecommunications spectrum distribution) does ‘rent-seeking’ really become an issue.”

Thanks.

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As for your question about developing markets, they are mafia driven, people get shot, businesses get firebombed, journalists are executed. Do you find that intriguing? Trust me, it’s not all that entertaining.

- Greg

It appears that you are making my argument for me. Free markets provide little or no opportunity for “rent-seeking.” Only by coercion (as in blood diamonds) or through government intervention (as in the telecommunications spectrum distribution) does “rent-seeking” really become an issue.

Tell me more, though, about “factory towns” in foreign countries as “corporate colonialism.” Tell me about the ill-effects of these.

Thanks.

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Telecom spectrum is a classic case of economic rents, which is why they get bid up when auctions are efficient and factory towns in developing countries are an example of corporate colonialism where there are poorly functioning labor markets. Non-compete contracts are another example of an economic rent (which is one reason why they rarely hold up in court unless they are very carefully written.

Although, none of this actually happens in a “free market.” Economic rents are a market distortion.

While the phenomenon might not be immediately apparent in Minnesota, it is abundantly clear for those of us that do business in the rougher parts of the world where market distortions are quite common.

Again, I really don’t see what this has to do with the article.

- Greg

Okay. I’m just trying to drill-down a little bit here. Don’t get bent out of shape.

Give me one or two specific examples of rent-seeking drives higher prices and/or weakens labor markets — again, in free markets and apart from governmental interventions.

Also, since people use similar terms to describe differing phenomenon, give me an example of “corporate colonialism” in a free market and its ill-effects.

Thanks.

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Yes, as I said: Higher prices. Weak labor markets. Blood Diamonds. Corporate colonialism. This is a fairly standard economic principle,

Although, I don’t really see the point, my article was specifically about rent seeking behavior with respect to regulation.

And yes, as I mentioned (I thought very clearly), patent protection is generally beneficial.

Of course, but “tariffs” represent government intervention. I requested examples “apart from government intervention.” And, for further clarity, while trademark and patent protections actually do constitute government intervention, let’s exclude those, as well. They seem to be relatively innocuous and may even have some positive effects in the marketplace.

Thanks.

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Although, I don’t really see the point, my article was specifically about rent seeking behavior with respect to regulation.

- Greg

Apart from rent-seeking based on government interventions in the free market, can you give me an example of ill-effects stemming from rent-seeking?

Thanks.

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