Directly Unproductive Profit-Seeking Activities

Abstract

In the preceding chapter we outlined a theory for how individuals (or firms) organize themselves into interest groups when there are public goods for the group which may be produced as a result of putting pressure on the government and the legislators. We will now take one more step in our analysis and see what the economic consequences of this behaviour may be. The activities of the interest groups towards securing favours for the members are known as rent seeking or directly unproductive profit-seeking (DUP) activities. These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

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