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Pirational choice: The economics of infamous pirate practices

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  • Leeson, Peter T.

Abstract

This paper investigates the economics of infamous pirate practices. Two closely related economic theories--the theory of signaling and the theory of reputation building--explain these practices. First, I examine the pirate flag, "Jolly Roger," which pirates used to signal their identity as unconstrained outlaws, enabling them to take prizes without costly conflict. Second, I consider how pirates combined heinous torture, public displays of "madness," and published advertisement of their fiendishness to establish a reputation that prevented costly captive behaviors. Pirates' infamous practices reduced their criminal enterprise's costs and increased its revenues, enhancing the profitability of life "on the account."

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  • Leeson, Peter T., 2010. "Pirational choice: The economics of infamous pirate practices," Journal of Economic Behavior & Organization, Elsevier, vol. 76(3), pages 497-510, December.
    • Handle: RePEc:eee:jeborg:v:76:y:2010:i:3:p:497-510
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