The Distribution of Income in a Despotic Society
A distribution of income between rulers and subjects, or among ranks in a ruling hierarchy, cannot be derived from considerations of marginal products of owned factors of production. Such a distribution can be derived as a balance of income and violence. Society is organized in ranks, and the ruler provides occupants with incomes just sufficient that it is not in their interest to rebel. To model such behaviour, it is necessary to introduce phenomena normally excluded in economic analysis: combat, violence, mortality rates as a component of the utility function, and a rudimentary technology of control.
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