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Mutual Raiding of Production and the Emergence of Exchange

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  • Kjell Hausken

Abstract

Joint exchange and raiding can emerge in a world of mutual raiding when the appropriated production is less valuable to the appropriator than to the defender and the defense is not too inferior to attack. The amounts of resources allocated to production and raiding and the amounts of goods exchanged reciprocally are determined endogenously. The model reduces to pure exchange and pure raiding as special cases. Pure exchange emerges when the usability of appropriation is sufficiently low. Pure raiding emerges if the defense is sufficiently inferior to attack. The results of the model are intermediate between the results of the two extreme cases. (JEL C6, C72, D51, D72, D74, F10) Copyright 2004, Oxford University Press.

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File URL: http://hdl.handle.net/10.1093/ei/cbh082
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Bibliographic Info

Article provided by Western Economic Association International in its journal Economic Inquiry.

Volume (Year): 42 (2004)
Issue (Month): 4 (October)
Pages: 572-586

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Handle: RePEc:oup:ecinqu:v:42:y:2004:i:4:p:572-586

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Cited by:
  1. Caruso Raul, 2011. "On the Nature of Peace Economics," Peace Economics, Peace Science, and Public Policy, De Gruyter, vol. 16(2), pages 1-13, January.
  2. Anderton, Charles H. & Carter, John R., 2008. "Vulnerable trade: The dark side of an Edgeworth box," Journal of Economic Behavior & Organization, Elsevier, vol. 68(2), pages 422-432, November.
  3. Caruso, Raul, 2007. "A Tentative Model of Conflict, Appropriation and Production in a two-sector Economy," MPRA Paper 4053, University Library of Munich, Germany.
  4. Tridimas, George, 2011. "The political economy of power-sharing," European Journal of Political Economy, Elsevier, vol. 27(2), pages 328-342, June.
  5. Kjell Hausken, 2013. "Exchange of goods while investing into production and safety," Operations Research and Decisions, Wroclaw University of Technology, Institute of Organization and Management, vol. 1, pages 29-35.
  6. Hausken, Kjell & Bier, Vicki M., 2011. "Defending against multiple different attackers," European Journal of Operational Research, Elsevier, vol. 211(2), pages 370-384, June.
  7. Hausken, Kjell, 2006. "Jack Hirshleifer: A Nobel Prize left unbestowed," European Journal of Political Economy, Elsevier, vol. 22(2), pages 251-276, June.
  8. Caruso, Raul, 2012. "Differentials in Property Rights in a two sector-economy," NEPS Working Papers 2/2012, Network of European Peace Scientists.
  9. Hoffmann, Magnus, 2006. "Enforcement of Property Rights in a Barter Economy," MPRA Paper 3260, University Library of Munich, Germany.

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