Unformatted text preview: Two implications of rent-seeking behavior: 1) this behavior consumes resources and money can even consume all positive profits 2) government failure occurs when the govt. becomes the tool of the rent seeker and the allocation of resources is made even less efficient by the intervention of government public choice theory- An economic theory that the public officials who set economic policies and regulate the players act in their own self-interest, just as firms do price discrimination- changing different prices to different buyers...
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- Fall '08
- Economics, govt., positive profits, opportunity cost Monopoly, Rent-seeking behavior- actions