The alcohol industry is one in which there is much rent seeking. Evidence of this has been brought to light yet again in the discussion of privatizing Virginia liquor sales as in this article from the Virginia-Pilot.
"For months, aides to Gov. Bob McDonnell have been meeting behind closed doors with alcohol retailers and wholesalers, public safety officials and faith-based groups to come up with a way to fulfill one of the governor's most notable campaign promises: privatizing Virginia's liquor stores."
In class we learned that firms seek rent by trying to influence how regulatory laws that affect their industry are made or revised. One such group of firms from the above quote, alcohol retailers and wholesalers, are coming to Richmond to affect McDonnell's proposal, which involves shifting liquor sales from a public monopoly to private competition. Currently, private retailers of alcohol have both the types of alcohol (primarily wine and beer) and their hours limited (6 am to midnight). This currently puts them at a distinct disadvantage to their competitors, which include the state-run liquor stores (that are able to sell the alcoholic beverages they are not) and restaurants and bars (that are able to sell the alcoholic beverages they are not, and during a wider range of hours, until 2am). Because of this, they are expending resources (time and money to lobby Richmond) in an effort to change the law so they can obtain the licenses that have been previously withheld from them (the ability to sell a wider range of alcoholic beverages), which would give them an economic rent other firms (those without the coveted licenses) would be prevented from obtaining (due the barrier of entry that is a license). It would also take economic rent away from the bars (they would no longer have a wider range of products available to sell than retailers) and of course the state (they would no longer have the monopoly they currently have).
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