Saturday, October 01, 2005

Rent seeking

Like Tyler, I cringe at the terminology "rent seeking." But you have to admit that rent seeking is one of the few things in economics that often begins or ends with an orgy.

2 Comments:

Anonymous Anonymous said...

Emirates Economist: What do I do if I see an orgy of rent-seeking behavior by my boss? He is not only appropriating our money but also our thoughts.

11:14 PM  
Anonymous Anonymous said...

Don't sell your AH! soul. However, economists would suggest - do this if you get the right price. He will argue that: Brendan Frazier sold his soul for love (“Bedazzled”). Demi Moore slept with Robert Redford for a million dollars to help her husband (“Indecent Proposal”) and Elijah Wood fought with his friend over “the Ring” for power (“Lord of the Rings”).

Sociologists often argue that these people are nothing more than social victims.

To allow your boss to continue putting a monetary value on his power over you is not only absurd but it also highlights a destroyed society of despicable bosses. You get them all over and they come in different nationalities, color, creed, religion and gender types.

To better understand these behaviors, explore the paper “Nature of Man” by one of Harvard’s (alumni) Prof Michael Jensen and the late Prof William Meckling. By the way, if these gentlemen sound familiar to you that’s because they are the minds behind one of my favorite theories – Agency Theory. Best of luck, I sympathize with you.

9:58 AM  

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