Question: A developer interested in building a casino in Creswell, Oregon, placed a curious announcement in the local newspaper. If local voters approved the casino, the

A developer interested in building a casino in Creswell, Oregon, placed a curious announcement in the local newspaper. If local voters approved the casino, the developer promised to give citizens a total of $2 million per year. With an adult population of about 1,600, each adult in Creswell would receive a cash payment of $1,250 per year. Why did the developers propose this deal? This is an example of rent seeking: The casino developer was seeking the profits that would come from having a monopoly in the casino market, and was willing to pay at least $2 million to get it.

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