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Understanding the economics of limited access orders: incentives, organizations and the chronology of developments

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  • VAN BAVEL, BAS
  • ANSINK, ERIK
  • VAN BESOUW, BRAM

Abstract

In ‘Violence and Social Orders’, North, Wallis and Weingast highlight the need of societies to control large-scale violence. In response to this need, a variety of social orders has emerged with differing institutional, political and economic characteristics. One of these social orders is the limited access order that was prevalent in most of history and still is nowadays. Taking the conceptual framework of North et al. as a starting point, we make three advances to their analysis of limited access orders. First, we analyse the incentive structure of actors involved, using a formal model of the main interactions in a limited access order. Second, we decompose organizations into two types and analyse their respective roles. Third, we use insights from historical research to scrutinize the chronology of the rise of organizations. Jointly, this allows us to refine and substantiate the insights gained by North et al., highlight the role of organizations and place the start of relevant developments earlier in time.

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  • Van Bavel, Bas & Ansink, Erik & Van Besouw, Bram, 2017. "Understanding the economics of limited access orders: incentives, organizations and the chronology of developments," Journal of Institutional Economics, Cambridge University Press, vol. 13(1), pages 109-131, March.
    • Handle: RePEc:cup:jinsec:v:13:y:2017:i:01:p:109-131_00
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    1. van Besouw, Bram & Ansink, Erik & van Bavel, Bas, 2016. "The economics of violence in natural states," Journal of Economic Behavior & Organization, Elsevier, vol. 132(PA), pages 139-156.
    2. Weicheng Lyu & Nirvikar Singh, 2023. "Embedded autonomy, political institutions, and access orders," Economics and Politics, Wiley Blackwell, vol. 35(1), pages 286-312, March.
    3. Nelozhin, Sergei, 2023. "Russia Today: does it real to turn to the path of progress?," MPRA Paper 119403, University Library of Munich, Germany, revised 08 Dec 2023.
    4. Judit Kapás & Pál Czeglédi, 2018. "Social orders, and a weak form of the Hayek–Friedman Hypothesis," International Review of Economics, Springer;Happiness Economics and Interpersonal Relations (HEIRS), vol. 65(3), pages 291-328, September.
    5. A. A. Auzan & A. A. Kurdin, 2022. "Institutional Aspects of the Evolution of Scientific Schools," Studies on Russian Economic Development, Springer, vol. 33(5), pages 529-534, October.

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