Monopoly Rent

Monopoly Rent

 

a special form of land rent in a capitalist economy; it occurs in connection with the sale of goods at monopoly prices in excess of their value.

In agriculture, monopoly rent is derived from lands on which uncommon crops, such as particular varieties of grapes, are cultivated; in extractive industry, such rents are related to the mining of rare metals. Because of the limited amount of land specially suited to the production of rare commodities and because of the high demand for the products, it becomes possible to market such products at prices above their real value for a more or less prolonged period. In all such cases, the capitalists renting such land must make very high payments to the land-owners; the basis of the payments emerges as monopoly rent. These rental payments take the form of additional income for the landowner. Thus monopoly rent represents that portion of the surplus value produced by wage labor that is appropriated by the landowner through the redistribution of such surplus value.

References in periodicals archive ?
answering this question: (1) the single monopoly rent theorem and (2)
It is also inherent in our previous assertion that monopoly rent, which includes both the resource rent and excess profits, exceeds the resource rent obtained in the competitive market.
The purpose of patents is to create a scarcity, thereby generating a monopoly rent for the holders of these rights.
Licensing Exclusivity, Transfer Costs, Monopoly Rent, Tacit Knowledge, Intellectual Property, Power Distance, Network Externality
This paper argues that there are strong economic arguments for treating monopoly rent as a social detriment, that any "public benefit test" should so treat them, and that the argument most commonly advanced in New Zealand for the "total surplus standard"--that welfare economics provides no secure reason in principle for comparing the gains of monopolists with the losses of consumers--provides no good reason for policymakers to ignore transfers, and altogether misses the really important economic arguments for regulating monopoly rents out of existence.
Yet it too is different from a monopoly rent in that the market is deliberately changed not deliberately refrained from movement.
Auto workers got a piece of the automobile industry's monopoly rent, especially before international competition among auto makers squeezed out much of that rent.
Rather, the purpose of an intellectual property right is to create a scarcity, thereby generating a monopoly rent for the holder of the right.
They find that high market concentration tends to improve corporate performance by increasing the monopoly rent.
Tollison (7) also acknowledges the possibility that consumers form a group to fight against the monopoly rent.
Further, they dispute David Harvey's assertion of class monopoly rent power.
When money is spent on proprietary software, only a small proportion of that money goes towards funding useful services and software development, as a large part of it goes as a monopoly rent to the shareholders of the proprietary software company.