Monopoly Rent

The following article is from The Great Soviet Encyclopedia (1979). It might be outdated or ideologically biased.

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.

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Rather, to gain part of the monopoly rent, politicians can threaten either to impose costly regulation or to remove regulations that help firms.

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Our model economy is perfectly competitive, and thus incumbents do not earn any monopoly rent that can be transferred to new entrants.

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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.

The stationary bandit model of intellectual property

A 'media patent' over a sport would create the same type of incentive, securing a monopoly rent by excluding competitive entry, thereby furnishing a long-term incentive to develop the sport rather than exploit it.

The curious case for media monopoly in technology-driven sports

DP: In Rebel Cities, you talk about monopoly rent and the contradictions inherent in that process.

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answering this question: (1) the single monopoly rent theorem and (2)

Law and the open Internet

Business persons who find themselves in monopoly positions may be able to profit handsomely (so-called monopoly rent) in terms of income.

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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.

Models for market structure

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The nature and determinants of exclusivity rights in international technology licensing

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.

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'There is no doubt that [they] have some positive economic impact, but the economics of it are not what people say they are.' Because the Olympics are unique, the IOC is able to extract 'monopoly rent,' he added.

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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.