Rent-seeking in the classroom and textbooks: Where are we after 50 years?

Abstract

In this paper we provide an overview of Tullock's work on rent-seeking in the area of economics education. After summarizing the basic rent-seeking model in both a domestic and international context, we conduct an analysis of undergraduate and graduate texts in public economics. We find a majority of undergraduate texts cover rent-seeking in depth, but two texts provide zero coverage. No graduate textbook surveyed mentions rent-seeking. We conclude by summarizing the economic education literature on rent-seeking, which can be divided into either classroom experiments or popular culture examples.

Rent-Seeking Behavior and Economic Justice: A Classroom Exercise

“…Strow and Strow ( 2006 ) further built upon this work, suggesting a modified version of the exercise in which a real monetary reward is distributed based on the results of a one-round all-pay auction in which students bid their own money. Hall et al ( 2019 ) summarize the economics education literature on rent seeking, including these three exercises, and treatment of the topic in public economics textbooks. Roush and Johnson ( 2018 ) modify the Goeree and Holt ( 1999 ) exercise by translating it to the context of recruiting in college athletics and adding a new mechanic in which players can pay bribes, but risk punishment if they do so.…”