Re: Public/Private

["David S. Shemano" <dshemano@xxxxxxxxxxx>]

Doug Henwood wrote:

>> >To me, rent-seeking is the attempt to increase profitability through
>> >the lobbying of the state.
>>
>> What about Microsoft's monopoly rents? The state has made them
>> possible through IP laws, but those are universally applicable; MSFT
>> has no special legal status.
>>
>> Doug

Not a good example for clarity, because the market for intellectual property is explicitly a creation of the state.  However, to take the bait, why would it be rent-seeking?  The society has determined that there should be a market for intellectual property.  The rules preexisted Microsoft.  Microsoft followed the rules.  If Microsoft lobbied for a change of the rules, that might be different.  For instance, when Disney successfully lobbied for an extension of the time copyrighted works are protected, I think that could be characterized as rent-seeking.  But that is analytically different than Microsoft benefiting from rules it did not create.

David Shemano