rent-seeking behavior

Rent-seeking behavior occurs when individuals or companies spend resources to gain financial advantages from existing policies, regulations, or resources without creating new value or productivity. Instead of producing goods or services, they focus on influencing laws or regulations to secure economic gains, often at the expense of overall economic efficiency. For example, lobbying for favorable tax breaks or barriers that limit competition are common forms of rent-seeking. This behavior can lead to wasted resources and a less efficient economy because efforts are directed toward securing advantages rather than generating new wealth.