THE FACT OR PRACTICE OF MANIPULATING PUBLIC POLICY OR ECONOMIC CONDITIONS AS A STRATEGY FOR INCREASING PROFITS. RENT-SEEKING IS A BEHAVIOR THAT DESCRIBES THE TENDENCY OF PEOPLE TO SEEK PROFITS WITHOUT DOING ANY REAL WORK. THIS REDUCES ECONOMIC EFFICIENCY THROUGH THE MISALLOCATION OF RESOURCES. RENT-SEEKING ACTIVITIES HAVE NEGATIVE EFFECTS ON THE REST OF SOCIETY. THEY RESULT IN REDUCED ECONOMIC EFFICIENCY THROUGH MISALLOCATION OF RESOURCES, REDUCED WEALTH CREATION, LOST GOVERNMENT REVENUE, HEIGHTENED INCOME INEQUALITY, RISK OF GROWING POLITICAL BRIBERY,
AND POTENTIAL NATIONAL DECLINE.
