The concept of economic rent (or monopoly profit) occupies a central place
in the literature on the subject of corruption. Economic rent arises when a person has
something unique or special in his possession. This something special can be a
luxury condominium in a posh neighborhood, a plot of land in the central business
district of the city, a natural resource like an oil well, or even some pleasing personal
traits such as beauty and charm. A person who owns such a special asset can charge a
more than normal price for its use and earn economic rent or monopoly profit. To
illustrate, suppose there is a young lady who has breathtakingly good looks, a charming
personality, and exceptional acting, singing and dancing skills. Due to these special
personal assets, she becomes a superstar and a heartthrob of teenagers all over the
country and thus commands a princely sum for her appearances. But what exactly is
her economic rent? To determine this, it is necessary to know the next best thing she
can do to earn a living if she is not a superstar. Suppose she has a law degree so the
next best occupation she can take up is to become a lawyer. Then the difference
between her income as a superstar and the earnings she can obtain from her next best
occupation (as a lawyer), is her economic rent for having an unusually pretty face,
charm, and superb singing, dancing and acting talents – a winning combination which
no other young lady in the country can match.
Our uniqueness makes a difference only if it is More Productive comparatively |
This reminds me two quotes
- Always remember that you are absolutely unique. Just like everyone else.
- Passion flows from finding and using our unique voice to accomplish great things.
Yes ya We are all
born Unique but
We forget it,
go with the Flow
& Loose It.................
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