What is he looking for rent?

Rent is to look for a process in economics in which an individual or other entity attempts to generate revenue by using a source of some type. This is contrary to the generation of income by making products that are sold for profit and similar forms of transactions. The term itself comes from the practice to buy all available land in the area and earn money rental for others for use in agriculture or as a living space. While the general concept of rent search has existed for centuries, the term itself was first used in 1974. The aim of these regulations is usually to create monopoly privileges for several selected members of the business community, allowing them to earn profits from their efforts to go second. This is usually achieved by obtaining a control interest in natural resources necessary for the production process and providing access to these resources for the price.

in the business worldThere are many examples of rent search today. Lobbyists employed by specific business concerns can try to persuade governments to determine the tariffs that these businesses provide protection against competitors. Import tariffs sometimes provide these types of benefits. Investors can join for the acquisition of real estate that they believe to be needed for business expansion in the future and stand up to rent the land to those businesses that want to use natural resources.

It is important to realize that while the idea of ​​searching for rent and profit is very similar, there is some key difference. When making profits, the idea of ​​creating a situation in which the buyer and the seller are satisfied with the outcome of the transaction. This process allows free competition and both sides are voluntarily involved in both sides that recognize that there are other possibilities with the possibility of mutual satisfaction. On the other hand, searching for rent is a situation where buyers do not have a small orno possibility of obtaining what they need to do business; There is no third -party supplier with whom they can trade and achieve the same results. So the buyers have no choice to get what they need and have to deal with a monopoly to get involved in the transaction.