In this paper we consider the way in which authorities arise in response to the need for coordination. In a model of local interaction, an authority is understood as a self-enforcing coordination selection structure, where the threat of violence ensures compliance. Such authorities form if mutually connected individuals with sufficient combined punishment potential have signalled their willingness to form such an authority, conditional upon the willigness of others to do so. Given a specific timing of decisions, we analyse the conditions under which authorities arise and under which they evolve into a steady situation with only one or several remaining authorities.
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Length: 23 pages Date of creation: 08 Feb 1999 Date of revision: Handle: RePEc:wpa:wuwpga:9902002
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Find related papers by JEL classification: B25 - Schools of Economic Thought and Methodology - - History of Economic Thought since 1925 - - - Historical; Institutional; Evolutionary; Austrian 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
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References listed on IDEAS Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
Martin J. Osborne & Ariel Rubinstein, 1994.
"A Course in Game Theory,"
MIT Press Books,
The MIT Press,
edition 1, volume 1, number 0262650401, December.
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