Rent Seeking in Evolution: Types, Actors, and Results

The purpose of this paper is to provide a comprehensive review of rent-seeking theory, which has developed over the past 50 years. The paper focuses on three key aspects of rent-seeking.First, in terms of types of rents, Public Choice economists traditionally focus on monopoly rents and rent-like transfers, while more recent scholars, particularly Khan, have expanded the scope and variety of rents to consider broader categories.Second, regarding the actors in the rent-seeking process, Public Choice economists primarily discuss rent-seekers and occasionally mention rent allocators, using a framework of methodological individualism. However, recent scholars, such as Boyd and Ngo, have shifted attention to rent-creators and rent allocators, approaching the subject through the lens of historical institutionalism. Finally, concerning the outcomes of rent-seeking, Public Choice economists argue that rent-seeking leads to social losses and is ultimately detrimental to economic growth. In contrast, recent researchers contend that the political as well as economic consequences of rent production deserve greater emphasis.