Citation

Discussion Paper Details

Please find the details for DP2173 in an easy to copy and paste format below:

Full Details   |   Bibliographic Reference

Full Details

Title: The Market for Protection and the Origin of the State

Author(s): Kai A. Konrad and Stergios Skaperdas

Publication Date: June 1999

Keyword(s): Governance, Origin of State, Protection and Security

Programme Area(s): Public Economics

Abstract: We examine a stark setting in which security or protection can be provided by self-governing groups of by for-profit entrepreneurs: kings, lords, or mafia dons. Though self-governance is best for the population, it faces problems of long-term viability. Typically, in providing security the stable market structure involves competing lords, a condition that leads to a tragedy of coercion: all the savings from the provision of collective protection are dissipated and welfare can be as low or lower than in the absence of a state.

For full details and related downloads, please visit: https://cepr.org/active/publications/discussion_papers/dp.php?dpno=2173

Bibliographic Reference

Konrad, K and Skaperdas, S. 1999. 'The Market for Protection and the Origin of the State'. London, Centre for Economic Policy Research. https://cepr.org/active/publications/discussion_papers/dp.php?dpno=2173