The Role and Evolution of Central Authorities
AbstractIn this paper we argue that authorities aid cooperation by means ofdirect coordination or the enforcement of re-commitment devices suchas contract laws.Credible threats of violence allow this role. In alocal interaction model, an authority forms if mutually connected individuals with sufficient combined punishment potential have signalled their willingness to form such an authority, conditional upon the willigness of others todo so. Given a specific timing of decisions, we analyse the conditions under which authorities arise and under which they evolve into a stationary state with only one or several remaining authorities.
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Bibliographic InfoPaper provided by Tinbergen Institute in its series Tinbergen Institute Discussion Papers with number 99-053/1.
Date of creation: 05 Aug 1999
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Central Authorities; Cooperation; Evolution; Externalities; Local Interaction;
Other versions of this item:
- B25 - Schools of Economic Thought and Methodology - - History of Economic Thought since 1925 - - - Historical; Institutional; Evolutionary; Austrian
- C7 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory
- D62 - Microeconomics - - Welfare Economics - - - Externalities
- D70 - Microeconomics - - Analysis of Collective Decision-Making - - - General
- H1 - Public Economics - - Structure and Scope of Government
- H4 - Public Economics - - Publicly Provided Goods
This paper has been announced in the following NEP Reports:
- NEP-ALL-1999-08-27 (All new papers)
- NEP-CDM-1999-08-27 (Collective Decision-Making)
- NEP-MIC-1999-08-27 (Microeconomics)
- NEP-PBE-1999-08-28 (Public Economics)
- NEP-PKE-1999-08-27 (Post Keynesian Economics)
- NEP-POL-1999-08-27 (Positive Political Economics)
- NEP-PUB-1999-08-27 (Public Finance)
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