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Property Out of Conflict: A Survey and Some New Results

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  • Cubel, Maria
  • Sanchez-Pages, Santiago

Abstract

Property rights often emerge from adversarial interactions in which agents make claims and defend them from the appropriation efforts of others. In this paper, we first offer a survey of the theoretical literature on this issue. We systematize the existing models by classifying them into two families and show that they can explain the emergence of classic types or property rights. We then explore a new model where agents can become the sole owner of a commonly owned production resource through an exclusion contest. We show that if overexploitation under joint property is severe enough relative to the returns to scale of conflict activities, private property emerges out of conflict. Inequality makes common ownership less likely to emerge. Finally, we characterize the set of common ownership regimes which are Pareto efficient and immune to conflict. Results show that proportionality to labour inputs in output sharing makes common ownership more resilient to conflict when inequality is higher.

Suggested Citation

  • Cubel, Maria & Sanchez-Pages, Santiago, 2020. "Property Out of Conflict: A Survey and Some New Results," SocArXiv 2wgyx_v1, Center for Open Science.
    • Handle: RePEc:osf:socarx:2wgyx_v1
    DOI: 10.31219/osf.io/2wgyx_v1
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    More about this item

    JEL classification:

    • D23 - Microeconomics - - Production and Organizations - - - Organizational Behavior; Transaction Costs; Property Rights
    • D62 - Microeconomics - - Welfare Economics - - - Externalities
    • D74 - Microeconomics - - Analysis of Collective Decision-Making - - - Conflict; Conflict Resolution; Alliances; Revolutions
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products

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