It is sometimes difficult to determine whether large corporations such as the Carlyle Group, or Wall Street overall, are expanding the economy in ways that broaden the economic value available to everyone, or just amassing money at other people's expense. Using Adam Davidson's framework, a company that doesn't add value but just rearranges existing dollars for its own benefit is called:

Question

Julien Friedman

Business

31 March, 13:05

It is sometimes difficult to determine whether large corporations such as the Carlyle Group, or Wall Street overall, are expanding the economy in ways that broaden the economic value available to everyone, or just amassing money at other people's expense. Using Adam Davidson's framework, a company that doesn't add value but just rearranges existing dollars for its own benefit is called:

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Diet Coke · Answer 1

rent seeking company

Explanation:

Currently most large corporations operate as monopolies or oligopolies which gives them huge market power and they generally abuse of it.

Rent seeking happens when companies (usually very large companies) increase their profits without an increase in productivity.

Corporations seek higher rent usually through lobbyists that obtain political favors for them, e. g. lower taxes, grants, subsidies, or tariff protection.