Although the term crony capitalism has rarely been used in the academic literature, its componentsrent seeking, regulatory capture, political entrepreneurship, and interest-group politicshave been studied extensively. Their common element is the political use of power to benefit some at the expense of others, a phenomenon that grows as the profitability of businesses comes to depend on how well businesses can secure subsidies, tax breaks, and regulations that work in their favor.
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|Other Independent Review articles by Randall G. Holcombe|
|Winter 2014||Consenting to Collective Action|
|Fall 2013||The Public Debt Problem|
|Fall 2012||Make Economics Policy Relevant|
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