Appropriation, violent enforcement, and transaction costs: a critical survey
AbstractIn this paper, I focus on the extension of transaction costs to appropriative activity and coercive power in the property rights approach. It has been argued that including the costs of appropriation and violent enforcement in transaction costs is based on the assumption that Coaseian bargaining can be extended to any institutional scenario, i.e., voluntary as well as coercive exchange. However, voluntary transactions cannot capture the logic of coercive power. This means that the assumption of an efficient political market is not valid, and that the "Political Coase Theorem" (PCT) lacks the logical consistency to provide a cornerstone for political theory.
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Bibliographic InfoArticle provided by Springer in its journal Public Choice.
Volume (Year): 147 (2011)
Issue (Month): 1 (April)
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Web page: http://www.springerlink.com/link.asp?id=100332
Appropriation; Hobbesian state; Political Coase theorem; Property rights approach; Transaction costs; Violent enforcement; D74; H11; H41; N40;
Other versions of this item:
- Mehrdad Vahabi, 2011. "Appropriation, violent enforcement and transaction costs : a critical survey," Post-Print hal-00629109, HAL.
- D74 - Microeconomics - - Analysis of Collective Decision-Making - - - Conflict; Conflict Resolution; Alliances
- H11 - Public Economics - - Structure and Scope of Government - - - Structure and Scope of Government
- H41 - Public Economics - - Publicly Provided Goods - - - Public Goods
- N40 - Economic History - - Government, War, Law, International Relations, and Regulation - - - General, International, or Comparative
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