Rent-seeking Problems And Countermeasures In Government Procurement Choice

Regardless of the developed country or the developing country, the behavior of rent-seeking generally exists and has influence on the aspects of various countries' politics, economy and society. As the main way of using public fund, the government procurement causes the rent-seeking activity frequently, so does our country. Rent-seeking always yields such bad results that society resources wasted, procurement quality reduced and society atmosphere ruined. Therefore, the study of reasons of rent-seeking and how to restrain the activity in this area has very important theory meaning and realistic guiding function. This function embodies in the area of completing the system of our government procurement, reinforcing the management of public fund and promoting the reform of finance system.This paper is divided into four parts, adopting both positive and normative analysis to analyze the causes of rent-seeking and raise the suggestion to solve this problem. Moreover, this paper expounds the development of rent-seeking theory with the comparative analysis; the game theory used ordinarily and successfully in the economics is quoted to clarify the major process of rent-seeking and extension process deeply.The creative accomplishments embody in the following areas: The first, comparing with the different schools of rent-seeking theory, this paper gives a definition to rent-seeking according to the study of international trade school.The second, this paper explains the deep reasons of rent-seeking in the government procurement area on the basis of the property right theory, commission-agent system and economic man assumption. The phenomenon of rent-seeking in government procurement is due to indistinct property right, the disadvantage of commission-agent system and the economic man's desire to maximize own profit leading to wrong activities.