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Conflict, Cooperation and Competition in Anarchy

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  • Tyler Cowen
  • Daniel Sutter

Abstract

Caplan and Stringham (2002) attempt to rebut the “paradox of cooperation” (Cowen and Sutter 1999) as it applies to libertarian anarchy. The paradox in the context of anarchy implies that if private defense agencies can cooperate to avoid conflict they can also collude to reestablish coercion. Caplan and Stringham argue that arbitration is self-enforcing while collusion requires solution of a prisoner’s dilemma. We agree that collusion requires more cooperative efficacy than arbitration, but maintain that arbitration requires considerably more organization than a simple coordination game. If a network of protection agencies can organize sufficiently to arbitrate disputes, they can also create a barrier to entry by refusing to arbitrate with entrants. Copyright Springer Science + Business Media, Inc. 2005

Suggested Citation

  • Tyler Cowen & Daniel Sutter, 2005. "Conflict, Cooperation and Competition in Anarchy," The Review of Austrian Economics, Springer;Society for the Development of Austrian Economics, vol. 18(1), pages 109-115, January.
    • Handle: RePEc:kap:revaec:v:18:y:2005:i:1:p:109-115
    DOI: 10.1007/s11138-005-5595-1
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    References listed on IDEAS

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    1. repec:ucp:bkecon:9780226253268 is not listed on IDEAS
    2. E. Eckard, 1998. "The NCAA Cartel and Competitive Balance in College Football," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 13(3), pages 347-369, June.
    3. Cowen, Tyler, 1994. "Rejoinder to David Friedman on the Economics of Anarchy," Economics and Philosophy, Cambridge University Press, vol. 10(2), pages 329-332, October.
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    Cited by:

    1. Polterovich, Victor, 2017. "Positive collaboration: Factors and mechanisms of evolution," Russian Journal of Economics, Elsevier, vol. 3(1), pages 24-41.
    2. Benjamin Powell & Edward Stringham, 2009. "Public choice and the economic analysis of anarchy: a survey," Public Choice, Springer, vol. 140(3), pages 503-538, September.
    3. Libman, Alexander Mikhailovich, 2009. "Эндогенные Границы И Распределение Власти В Федерациях И Международных Сообществах [ENDOGENOUS BOUNDARIES AND DISTRIBUTION OF POWER In the Federation]," MPRA Paper 16473, University Library of Munich, Germany.
    4. Edward Stringham & Caleb Miles, 2012. "Repelling states: Evidence from upland Southeast Asia," The Review of Austrian Economics, Springer;Society for the Development of Austrian Economics, vol. 25(1), pages 17-33, March.
    5. Rogers, Douglas B. & Smith, Adam C. & Wilson, Bart J., 2013. "Violence, access, and competition in the market for protection," European Journal of Political Economy, Elsevier, vol. 29(C), pages 1-17.
    6. Vincent Geloso & Louis Rouanet, 2023. "Ethnogenesis and statelessness," European Journal of Law and Economics, Springer, vol. 55(3), pages 377-407, June.
    7. Polterovich, Victor, 2016. "Позитивное Сотрудничество: Факторы И Механизмы Эволюции [Positive Collaboration: Factors and Mechanisms of Evolution]," MPRA Paper 73448, University Library of Munich, Germany.
    8. Benjamin Powell & Edward Stringham, 2009. "Public choice and the economic analysis of anarchy: a survey," Public Choice, Springer, vol. 140(3), pages 503-538, September.

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