Anarchy, Monopoly, and Predation
AbstractAlthough institutions rooted in the folk theorem can support self-enforcing exchange in a wide variety of contexts, their potential to create cooperation is not limitless. In particular, the folk theorem may break down when some agents are physically stronger than others. I demonstrate this in the context of Stringham's  vertically integrated proprietary communities. In this system a monopoly proprietor maximizes profits by optimally extorting his tenants in violation of voluntary contracts. The result is a predatory rather than voluntary regime.
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Bibliographic InfoArticle provided by Mohr Siebeck, Tübingen in its journal Journal of Institutional and Theoretical Economics.
Volume (Year): 163 (2007)
Issue (Month): 3 (September)
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Find related papers by JEL classification:
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- Powell, Benjamin & Stringham, Edward, 2009.
"Public choice and the economic analysis of anarchy: a survey,"
26097, University Library of Munich, Germany.
- 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.
- 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.
- Libman, Alexander Mikhailovich, 2009.
"Эндогенные Границы И Распределение Власти В Федерациях И Международных Сообществах
[ENDOGENOUS BOUNDARIES AND DISTRIBUTION O," MPRA Paper 16473, University Library of Munich, Germany.
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