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Overlapping Jurisdictions, Proprietary Communities, and Competition in the Realm of Law

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  • Edward Stringham

Abstract

Frey [2001] and others propose subjecting governments to competition within their jurisdiction, but classical liberals argue that having competing law enforcers cannot work. This article describes a hybrid system that relies on markets but has one law enforcement agency per region, with profit motivated proprietors policing their properties. Vertically integrated proprietary communities wishing to attract customers would need to police their property in a way that patrons desire. Although a monopoly on the use of force would exist, bundling law with real estate makes the law enforcer the residual claimant and creates incentives for them to not to expropriate their clientele.

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Bibliographic Info

Article provided by Mohr Siebeck, Tübingen in its journal Journal of Institutional and Theoretical Economics.

Volume (Year): 162 (2006)
Issue (Month): 3 (September)
Pages: 516-534

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Handle: RePEc:mhr:jinste:urn:sici:0932-4569(200609)162:3_516:ojpcac_2.0.tx_2-m

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Cited by:
  1. Boettke, Peter, 2011. "An Anarchist's reflection on the political economy of everyday life," MPRA Paper 32374, University Library of Munich, Germany.
  2. Powell, Benjamin & Stringham, Edward P., 2008. "Public Choice and the Economic Analysis of Anarchy: A Survey," Working Papers 2008-7, Suffolk University, Department of Economics.
  3. Benjamin Powell & Edward Stringham, 2012. "Radical scholarship taking on the mainstream: Murray Rothbard’s contribution," The Review of Austrian Economics, Springer, vol. 25(4), pages 315-327, December.
  4. Edward Stringham & Caleb Miles, 2012. "Repelling states: Evidence from upland Southeast Asia," The Review of Austrian Economics, Springer, vol. 25(1), pages 17-33, March.
  5. Stringham, Edward P. & Miller, Jennifer K. & Clark, Jeff Ray, 2010. "Internalizing Externalities Through Private Zoning: The Case of Walt Disney Company's Celebration, Florida," Journal of Regional Analysis and Policy, Mid-Continent Regional Science Association, vol. 40(2).

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