It's Called Rent Seeking

It's Called Rent Seeking

Rent seeking is an economic term which describes a situation in which an individual or group of individuals manipulate the social or political environment to obtain a benefit for themselves. Such benefits always come at the expense of others and the economy as a whole. Many times these benefits take the form of things like production subsidies (i.e. corn/ethanol) and professional licensing (i.e. licensed electrician or hairdresser).

But such benefits can also include new regulations which reduce competition. A new law passed in MA achieves just that. The law will prevent homeowners who live near Gillette Stadium from using their property as they wish on game and event days. It states that homeowners can no longer sell parking spaces on their property and will fine homeowners $100 per violating vehicle. Naturally, local lot owners applaud the new law, happy that the government has eliminated a low-cost competitor.

Despite the lot owner's complaints to the contrary, this had nothing to do with portable toilets or police. Those should be things that help your business stand out. And if business owners have a problem with the tax and regulatory structure that prevents them from competing with homeowner lots (which don't even come with portable toilets, by the way), then they should be addressing that with the local and state governments. Instead they lobby government to arguably violate the rights of the homeowners by banning them from using their property as they want.