Abstract
‘Rent’ is the payment for use of a resource, whether it be land, labour, equipment, ideas, or even money. The term is often restricted to payment for use of land or equipment. ‘Economic rent’ is payment for use of any resource whose supply is fixed. Rent serves a social purpose because market levels of rent indicate which uses of fixed resources are the highest valued, and direct such resources to those uses. ‘Monopoly rent’ is paid to producers in markets that are artificially restricted; it may be dissipated by ‘rent seekers’ who compete for monopoly status.
This chapter was originally published in The New Palgrave Dictionary of Economics, 2nd edition, 2008. Edited by Steven N. Durlauf and Lawrence E. Blume
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Bibliography
Marshall, A. 1890. Principles of economics. 1st ed. London: Macmillan.
Marshall, A. 1920. Principles of economics. 8th ed. London: Macmillan. reprinted, 1946.
Ricardo, D. 1821. Principles of political economy and taxation. 3rd ed, 1965. London: Dent Dutton.
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Alchian, A.A. (2008). Rent. In: The New Palgrave Dictionary of Economics. Palgrave Macmillan, London. https://doi.org/10.1057/978-1-349-95121-5_1738-2
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DOI: https://doi.org/10.1057/978-1-349-95121-5_1738-2
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Publisher Name: Palgrave Macmillan, London
Online ISBN: 978-1-349-95121-5
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