Gordon Tullock--The Origin Rent-seeking Concept

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1、InternationalJournalofBusinessandEconomics,2003,Vol.2,No.1,1-8TheOriginRent-SeekingConcept*GordonTullockSchoolofLaw,GeorgeMasonUniversity,U.S.A.AbstractPossiblyasapreludetoaminiseriesofcriticalreviewessays,thisshortpaperisin-tendedtorevisitandclarifyTullock'sco

2、ntributionstotheconceptofrent-seeking.Somesub-sequentcontributionsarehighlighted,soareitsimplicationsonsocialcostsandwealthtrans-fers.Keywords:rent-seeking;socialcosts;transfers;politicaleconomyJELclassification:B30;D61;D72Thisisanessayonmycontributiontotherent

3、-seekingconcept.Itdescribesthecontextofmyoriginalpapersonsocialcostandwealthtransfersandtherecognitionofthesepapersbysubsequentwritersontherent-seekingconcept.Ibeginnowbydiscussingtheoriginoftheconcept.Acompletehistoryofthephenomenonwouldhavetobeginbydiscussing

4、EgyptiansandBabyloniansthousandsofyearsago.Thisessay,however,isabouttheconceptofrent-seekingasitevolvedintheliteratureofpoliticaleconomy.Figure1PMonopolyPricePmWelfareLossCAMarginalCostTransferMarginalDemandRevenue0MonopolyEfficientQQuantityQuantity*Thisessayis

5、basedonalecturegivenatFengChiaUniversity,Taichung,Taiwan.2InternationalJournalofBusinessandEconomicsIbeginwiththeearly1960sbydiscussingcertainpaperswhichraisedaprob-lemineconomicstowhichtheconceptofrent-seekingwasasolution.Atthattime,monopolypowerwasbeingsevere

6、lycriticizedusingadiagramlikeFigure1.TheshadedwelfaretrianglelabeledAwascalledthewelfarelossfrommonopoly;therectangleCwassaidtobeatransferandhencenotasocialcost.Figure2PHomeSupplyTransferWorldPriceAfterTariffCDABWorldPriceWelfareTariffWelfareLoss(1)RevenueLoss(

7、2)Demand0qhqrqtqwQFigure2isadiagramofasimilarnature,whichwasusedininternationaltradetheorytoshowthewelfareeffectsoftariffs.InthiscasetherearetwowelfarelosstrianglesAandB.ThefirstisawelfarelosssimilartothatoftriangleAinFigure1whilethesecondisanetwasteofresources

8、duetotheinefficientshiftofresourcestootherindustries.Inthiscasetherearetwotypesoftransfers:(1)atransferfromconsumerstoproducers(thetrapezoidC)and(2)atransferoftaxrevenuefrom