The Welfare Economics of Markets, Voting and Predation

This work dwells upon two themes, each of which differs from traditional welfare economics - predation or taking (as a source of inefficiency in the economy) and the tension between voting and markets as alternative methods of decision-making. Predation is seen as a form of economic theft on the part of either the public or the private sector, for example, where theft, banditry, rent-seeking, over-use of common property and, in some cases, advertising, speculation and litigation exemplify private sector taking because they waste resources in competition over a fixed prize and, conversely, where tariffs favouring one industry at the expense of others, subsidies to politically powerful groups or firms, over-expansion of departments of government at the instigation of influential bureaucrats, reservation of jobs for members of a privileged community are instances of public sector taking.