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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.

Suggested Citation

  • Edward Stringham, 2006. "Overlapping Jurisdictions, Proprietary Communities, and Competition in the Realm of Law," Journal of Institutional and Theoretical Economics (JITE), Mohr Siebeck, Tübingen, vol. 162(3), pages 516-534, September.
    • Handle: RePEc:mhr:jinste:urn:sici:0932-4569(200609)162:3_516:ojpcac_2.0.tx_2-m
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    References listed on IDEAS

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    1. Walter Block & Thomas J. DiLorenzo, 2000. "Is Voluntary Government Possible? A Critique of Constitutional Economics," Journal of Institutional and Theoretical Economics (JITE), Mohr Siebeck, Tübingen, vol. 156(4), pages 567-567, December.
    2. Caplan, Bryan, 2001. "Standing Tiebout on His Head: Tax Capitalization and the Monopoly Power of Local Governments," Public Choice, Springer, vol. 108(1-2), pages 101-122, July.
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    1. Private Governance and Low-Frequency Preferences for Violence
      by ? in Cato Unbound on 2015-10-13 13:11:00

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    Cited by:

    1. Leeson Peter T. & Williamson Claudia R., 2009. "Anarchy and Development: An Application of the Theory of Second Best," The Law and Development Review, De Gruyter, vol. 2(1), pages 77-96, July.
    2. Peter Boettke, 2012. "An anarchist’s reflection on the political economy of everyday life," The Review of Austrian Economics, Springer;Society for the Development of Austrian Economics, vol. 25(1), pages 1-7, March.
    3. Benjamin Powell & Edward Stringham, 2009. "Public choice and the economic analysis of anarchy: a survey," Public Choice, Springer, vol. 140(3), pages 503-538, September.
    4. Bálint Madlovics & Bálint Magyar, 2021. "Post-communist predation: modeling reiderstvo practices in contemporary predatory states," Public Choice, Springer, vol. 187(3), pages 247-273, June.
    5. Edward Stringham & Caleb Miles, 2012. "Repelling states: Evidence from upland Southeast Asia," The Review of Austrian Economics, Springer;Society for the Development of Austrian Economics, vol. 25(1), pages 17-33, March.
    6. Peter T. Leeson, 2010. "Anarchy Unbound: How Much Order Can Spontaneous Order Create?," Chapters, in: Peter J. Boettke (ed.), Handbook on Contemporary Austrian Economics, chapter 10, Edward Elgar Publishing.
    7. Peter J. Boettke (ed.), 2010. "Handbook on Contemporary Austrian Economics," Books, Edward Elgar Publishing, number 12822.
    8. Alexander W. Salter & Abigail R. Hall, 2015. "Calculating Bandits: Quasi-Corporate Governance and Institutional Selection in Autocracies," Advances in Austrian Economics, in: New Thinking in Austrian Political Economy, volume 19, pages 193-213, Emerald Group Publishing Limited.
    9. Peter T. Leeson, 2007. "Anarchy, Monopoly, and Predation," Journal of Institutional and Theoretical Economics (JITE), Mohr Siebeck, Tübingen, vol. 163(3), pages 467-482, September.
    10. Stefano Moroni, 2014. "Towards a general theory of contractual communities: neither necessarily gated, nor a form of privatization," Chapters, in: David Emanuel Andersson & Stefano Moroni (ed.), Cities and Private Planning, chapter 3, pages 38-65, Edward Elgar Publishing.
    11. 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), pages 1-8.
    12. Benjamin Powell & Edward Stringham, 2012. "Radical scholarship taking on the mainstream: Murray Rothbard’s contribution," The Review of Austrian Economics, Springer;Society for the Development of Austrian Economics, vol. 25(4), pages 315-327, December.
    13. Caleb J. Miles & Edward Peter Stringham, 2014. "Eliminating the Perceived Legitimacy of the State," Palgrave Macmillan Books, in: Austrian Theory and Economic Organization, chapter 0, pages 147-174, Palgrave Macmillan.
    14. Walter BLOCK, 2016. "Anti-aircraft Missiles and Gun Control," Journal of Social and Administrative Sciences, KSP Journals, vol. 3(2), pages 77-82, June.
    15. Benjamin Powell & Edward Stringham, 2009. "Public choice and the economic analysis of anarchy: a survey," Public Choice, Springer, vol. 140(3), pages 503-538, September.
    16. Ilia Murtazashvili & Jennifer Murtazashvili, 2016. "When does the emergence of a stationary bandit lead to property insecurity?," Rationality and Society, , vol. 28(3), pages 335-360, August.
    17. Salter, Alexander William, 2015. "Rights to the Realm: Reconsidering Western Political Development," American Political Science Review, Cambridge University Press, vol. 109(4), pages 725-734, November.

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    More about this item

    JEL classification:

    • D74 - Microeconomics - - Analysis of Collective Decision-Making - - - Conflict; Conflict Resolution; Alliances; Revolutions
    • H10 - Public Economics - - Structure and Scope of Government - - - General
    • K40 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - General
    • L33 - Industrial Organization - - Nonprofit Organizations and Public Enterprise - - - Comparison of Public and Private Enterprise and Nonprofit Institutions; Privatization; Contracting Out

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