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Quasirent is a term in economics that describes temporary rent like returns to a supplier/owner.
Quasi-rent differs from pure economic rent in that it is a temporary phenomenon. It can arise from the barriers to entry that potential competitors face in the short run, such as the granting of patents or other legal protections for intellectual property by governments. It can also arise due to entrepreneurial address of market fluctuation, or it can arise due to the lack of real capital to meet near term demand increases. In the longer term the opportunity to profit will bring new capital into existence and the quasi rent will be competed away.
In Industrial Organizations field, Williamson points "The joining of opportunism with transaction-specific investments (or what Klein, Crawford, and Alchian refer to as "appropriable quasi rents") is a leading factor in explaining decisions to vertically integrate."
Alfred Marshall (1842-1924) was the first to observe quasi-rents.
Note on quasi-rent - this concept was put forward by Alfred Marshall. Quasi-rent refers to that additional income which is similar to rent. According to Ricardo, rent arises on account of fixed supply of land. But there are other factors which are found in fixed supply in the short term. The additional income earned by these factors in the short-period is similar to rent.
- "Quasi Rent".
- "Quasi Rent Explained".
- Williamson, Oliver (Oct 1979). "Transaction-Cost Economics: The governance of contractual relationsnutsl=Journal of Law and Economics" (PDF). 22 (2): 233–261. doi:10.1086/466942.