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 ?
Our model economy is perfectly competitive, and thus incumbents do not earn any monopoly rent that can be transferred to new entrants.
The government is simply an agent to facilitate an internal transfer between the citizens of a nation-state, who have collectively consented to an artificial monopoly, in order to create the monopoly rent incentive to spur its inventive citizens to action.
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
In the European market environment, where exchange monopolies are still prevalent, the real owners of the liquidity are now questioning a structure where they provide their liquidity to a monopoly that then charges monopoly rent prices to trade on its system, takes the resulting trading data and sells it back to the original liquidity provider for a sizeable profit.
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.
If baseball teams as a group do not earn monopoly rent (above market rates of return) on strictly financial terms after appropriate accounting adjustments are made, it is because (1) the indirect or nonfinancial returns are not being measured, (2) the monopoly rent has already been capitalized in a higher franchise value, or (3) the industry is being mismanaged.
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.