About the project
IIPP is exploring how and why a large part of the value created within the society is extracted in the form of rent payments. These include the financial, insurance and real estate sector (FIRE sector) but also non-financial firms who are becoming increasingly adept at extracting value from citizens, gaming regulations, and engaging in rent-seeking motivated lobbying.
Most notable in recent years has been the enormous growth of digital platforms such as Amazon, Google, Facebook, and Apple. Despite the fact that we all enjoy services offered by these firms, their control over digital data, algorithms, and the digital architecture allows them to determine which products users will be able to choose. This gives them huge rent extraction opportunities against both producers and consumers, i.e. the productive sectors of the economy. A deeper understanding of how these actors extract value beyond their contribution to value creation will improve our understanding of rent-seeking in contemporary economies and how to regulate it.
In a new project, generously funded by the Omidyar Network, IIPP will develop a new theoretical approach on the rent dynamics in digital platforms, real estate, and finance. Given the importance of these sectors, our new lens will create important insights into the commonalities and unique aspects of each sector. As rents in digital platforms are largely overlooked, comparing and contrasting it with other rentier models is essential in understanding its nature. Therefore, IIPP will look at how algorithms can enhance rent extraction, and what new types of governance structures are needed to tackle this phenomenon.
Partner
Link
Principal investigators
Mariana Mazzucato
Founder and Director
View Mariana's profile
iipp-director@ucl.ac.uk
Rainer Kattel
Deputy Director
View Rainer's profile
Josh Ryan-Collins
Head of Finance and Macroeconomics
View Josh's profile
Giorgos Gouzoulis
Research Fellow
View Giorgos' profile
Tim O'Reilly
Visiting Professor of Practice
View Tim's profile
Contact
Josh Ryan-Collins
Head of Finance and Macroeconomics
View Josh's profile