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Producers and Predators

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  • Herschel I. Grossman

Abstract

This paper explores a series of general-equilibrium models in which people can choose to be either producers or predators, and in which producers can allocate their resources either to production or to guarding their production against predators. The analysis shows how the ratio of predators to producers and the social cost of predation depend on the technology of predation, on the interpersonal distribution of productive resources, and in an fundamental way on whether the decision to allocate resources to guarding against predators is made individually or collectively.

Suggested Citation

  • Herschel I. Grossman, 1999. "Producers and Predators," NBER Working Papers 6499, National Bureau of Economic Research, Inc.
    • Handle: RePEc:nbr:nberwo:6499
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    References listed on IDEAS

    as
    1. Herschel I. Grossman & Minseong Kim, 2002. "Predation, Efficiency, and Inequality," Journal of Institutional and Theoretical Economics (JITE), Mohr Siebeck, Tübingen, vol. 158(3), pages 393-407, September.
    2. Alberto Alesina & Reza Baqir & William Easterly, 1999. "Public Goods and Ethnic Divisions," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 114(4), pages 1243-1284.
    3. Grossman, Herschel I & Kim, Minseong, 1995. "Swords or Plowshares? A Theory of the Security of Claims to Property," Journal of Political Economy, University of Chicago Press, vol. 103(6), pages 1275-1288, December.
    4. Herschel I. Grossman & M. Kim, 1997. "Human Capital and Predation: A Positive Theory of Educational Policy," Working Papers 97-30, Brown University, Department of Economics.
    5. Grossman, Herschel I., 2002. ""Make us a king": anarchy, predation, and the state," European Journal of Political Economy, Elsevier, vol. 18(1), pages 31-46, March.
    6. William Easterly & Ross Levine, 1997. "Africa's Growth Tragedy: Policies and Ethnic Divisions," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 112(4), pages 1203-1250.
    7. Brito, Dagobert L. & Intriligator, Michael D., 1985. "Conflict, War, and Redistribution," American Political Science Review, Cambridge University Press, vol. 79(4), pages 943-957, December.
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    More about this item

    JEL classification:

    • D50 - Microeconomics - - General Equilibrium and Disequilibrium - - - General
    • D61 - Microeconomics - - Welfare Economics - - - Allocative Efficiency; Cost-Benefit Analysis

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