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The Economics of Empire-Building: Predatory and Price Competitions

Author

Listed:
  • Antoine Pietri

    (CES - Centre d'économie de la Sorbonne - UP1 - Université Paris 1 Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique)

  • Tarik Tazdaït

    (CIRED - centre international de recherche sur l'environnement et le développement - Cirad - Centre de Coopération Internationale en Recherche Agronomique pour le Développement - EHESS - École des hautes études en sciences sociales - AgroParisTech - ENPC - École des Ponts ParisTech - CNRS - Centre National de la Recherche Scientifique)

  • Mehrdad Vahabi

    (CEPN - Centre d'Economie de l'Université Paris Nord - UP13 - Université Paris 13 - USPC - Université Sorbonne Paris Cité - CNRS - Centre National de la Recherche Scientifique)

Abstract

We build a theoretical framework consistent with historical evidence in which empire-building is explained by price and predatory competitions on the market for protection. We explore how the assets structure possessed by the buyers of protection influences the nature of protection and in fine the size of empires. Our main contribution is to introduce a distinction between two types of rent, namely an "absolute" and a "differential" one. The first corresponds to rents extracted by empires using threats and coercion; the second, to economic advantages conferred on subjects of an empire.

Suggested Citation

  • Antoine Pietri & Tarik Tazdaït & Mehrdad Vahabi, 2017. "The Economics of Empire-Building: Predatory and Price Competitions," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) hal-01425105, HAL.
    • Handle: RePEc:hal:cesptp:hal-01425105
    DOI: 10.1628/093245616X14659946859954
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    Cited by:

    1. Mehrdad Vahabi, 2016. "A positive theory of the predatory state," Public Choice, Springer, vol. 168(3), pages 153-175, September.
    2. Antoine Pietri, 2017. "Les modèles de « rivalité coercitive » dans l’analyse économique des conflits," Revue d'économie politique, Dalloz, vol. 127(3), pages 307-352.
    3. Ennio Piano, 2020. "Coase Goes to War: Contract Choice on the Battlefield," Revue d'économie politique, Dalloz, vol. 130(6), pages 1001-1023.

    More about this item

    JEL classification:

    • D74 - Microeconomics - - Analysis of Collective Decision-Making - - - Conflict; Conflict Resolution; Alliances; Revolutions
    • H56 - Public Economics - - National Government Expenditures and Related Policies - - - National Security and War
    • L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets

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