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The Market for Protection and the Origin of the State Author info | Abstract | Publisher info | Download info | Related research | Statistics Konrad, Kai A
Skaperdas, Stergios
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We examine a stark setting in which security or protection can be provided by self-governing groups of by for-profit entrepreneurs: kings, lords, or mafia dons. Though self-governance is best for the population, it faces problems of long-term viability. Typically, in providing security the stable market structure involves competing lords, a condition that leads to a tragedy of coercion: all the savings from the provision of collective protection are dissipated and welfare can be as low or lower than in the absence of a state.
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Paper provided by C.E.P.R. Discussion Papers in its series CEPR Discussion Papers with number
2173.
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Date of creation: Jun 1999Date of revision:
Handle: RePEc:cpr:ceprdp:2173Contact details of provider: Postal: Centre for Economic Policy Research, 53--56 Great Sutton Street, London EC1V 0DG Phone: 44 - 20 - 7183 8801 Fax: 44 - 20 - 7183 8820
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Keywords: Governance ; Origin of State ; Protection ; Security ; Other versions of this item:
Find related papers by JEL classification: D30 - Microeconomics - - Distribution - - - General D70 - Microeconomics - - Analysis of Collective Decision-Making - - - General H10 - Public Economics - - Structure and Scope of Government - - - General
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