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Mutual Raiding of Production and the Emergence of Exchange

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  • Kjell Hausken

Abstract

Joint exchange and raiding can emerge in a world of mutual raiding when the appropriated production is less valuable to the appropriator than to the defender and the defense is not too inferior to attack. The amounts of resources allocated to production and raiding and the amounts of goods exchanged reciprocally are determined endogenously. The model reduces to pure exchange and pure raiding as special cases. Pure exchange emerges when the usability of appropriation is sufficiently low. Pure raiding emerges if the defense is sufficiently inferior to attack. The results of the model are intermediate between the results of the two extreme cases. (JEL C6, C72, D51, D72, D74, F10) Copyright 2004, Oxford University Press.

Suggested Citation

  • Kjell Hausken, 2004. "Mutual Raiding of Production and the Emergence of Exchange," Economic Inquiry, Western Economic Association International, vol. 42(4), pages 572-586, October.
    • Handle: RePEc:oup:ecinqu:v:42:y:2004:i:4:p:572-586
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    File URL: https://hdl.handle.net/10.1093/ei/cbh082
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    Citations

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    Cited by:

    1. Anderton, Charles H. & Carter, John R., 2008. "Vulnerable trade: The dark side of an Edgeworth box," Journal of Economic Behavior & Organization, Elsevier, vol. 68(2), pages 422-432, November.
    2. Peter T. Leeson, 2007. "Trading with Bandits," Journal of Law and Economics, University of Chicago Press, vol. 50(2), pages 303-321.
    3. Anderton,Charles H. & Carter,John R., 2009. "Principles of Conflict Economics," Cambridge Books, Cambridge University Press, number 9780521875578, December.
    4. Hausken, Kjell, 2006. "Jack Hirshleifer: A Nobel Prize left unbestowed," European Journal of Political Economy, Elsevier, vol. 22(2), pages 251-276, June.
    5. Raul Caruso, 2012. "Differentials in property Rights in a two-sector economy," Revue d'économie politique, Dalloz, vol. 122(2), pages 257-278.
    6. Garfinkel, Michelle R. & Skaperdas, Stergios, 2007. "Economics of Conflict: An Overview," Handbook of Defense Economics, in: Keith Hartley & Todd Sandler (ed.), Handbook of Defense Economics, edition 1, volume 2, chapter 22, pages 649-709, Elsevier.
    7. Kjell Hausken & Vicki M. Bier & Jun Zhuang, 2009. "Defending Against Terrorism, Natural Disaster, and All Hazards," International Series in Operations Research & Management Science, in: Vicki M. M. Bier & M. Naceur Azaiez (ed.), Game Theoretic Risk Analysis of Security Threats, chapter 4, pages 65-97, Springer.
    8. Leeson,Peter T., 2014. "Anarchy Unbound," Cambridge Books, Cambridge University Press, number 9781107629707.
    9. Hoffmann, Magnus, 2006. "Enforcement of Property Rights in a Barter Economy," MPRA Paper 3260, University Library of Munich, Germany.
    10. Anna Balestra & Raul Caruso, 2023. "Vaccines between war and market," International Area Studies Review, Center for International Area Studies, Hankuk University of Foreign Studies, vol. 26(1), pages 24-39, March.
    11. Kjell Hausken & Gregory Levitin, 2008. "Efficiency of Even Separation of Parallel Elements with Variable Contest Intensity," Risk Analysis, John Wiley & Sons, vol. 28(5), pages 1477-1486, October.
    12. Hausken, Kjell & Bier, Vicki M., 2011. "Defending against multiple different attackers," European Journal of Operational Research, Elsevier, vol. 211(2), pages 370-384, June.
    13. Hausken, Kjell & Knutsen, John F., 2010. "An enabling mechanism for the creation, adjustment, and dissolution of states and governmental units," Economics - The Open-Access, Open-Assessment E-Journal (2007-2020), Kiel Institute for the World Economy (IfW Kiel), vol. 4, pages 1-38.
    14. Raul Caruso, 2010. "Butter, Guns And Ice-Cream Theory And Evidence From Sub-Saharan Africa," Defence and Peace Economics, Taylor & Francis Journals, vol. 21(3), pages 269-283.
    15. Gregory Levitin & Kjell Hausken, 2010. "Resource Distribution in Multiple Attacks Against a Single Target," Risk Analysis, John Wiley & Sons, vol. 30(8), pages 1231-1239, August.
    16. Tridimas, George, 2011. "The political economy of power-sharing," European Journal of Political Economy, Elsevier, vol. 27(2), pages 328-342, June.
    17. Kjell Hausken, 2005. "Production and Conflict Models Versus Rent-Seeking Models," Public Choice, Springer, vol. 123(1), pages 59-93, April.
    18. Raul Caruso & Jon Echevarria-Coco, 2023. "International prices and continuing conflict: Theory and evidence from sub-Saharan Africa (1980–2017)," Journal of Peace Research, Peace Research Institute Oslo, vol. 60(6), pages 889-905, November.
    19. Anderton, Charles H. & Carter, John R., 2007. "A Survey of Peace Economics," Handbook of Defense Economics, in: Keith Hartley & Todd Sandler (ed.), Handbook of Defense Economics, edition 1, volume 2, chapter 35, pages 1211-1258, Elsevier.
    20. Caruso Raul, 2011. "On the Nature of Peace Economics," Peace Economics, Peace Science, and Public Policy, De Gruyter, vol. 16(2), pages 1-13, January.
    21. Kjell Hausken, 2013. "Exchange of goods while investing into production and safety," Operations Research and Decisions, Wroclaw University of Science and Technology, Faculty of Management, vol. 23(1), pages 29-35.
    22. Antoine Pietri, 2017. "Les modèles de « rivalité coercitive » dans l’analyse économique des conflits," Revue d'économie politique, Dalloz, vol. 127(3), pages 307-352.
    23. Caruso, Raul, 2007. "A Tentative Model of Conflict, Appropriation and Production in a two-sector Economy," MPRA Paper 4053, University Library of Munich, Germany.
    24. Kjell Hausken & Gregory Levitin, 2011. "Shield versus sword resource distribution in K-round duels," Central European Journal of Operations Research, Springer;Slovak Society for Operations Research;Hungarian Operational Research Society;Czech Society for Operations Research;Österr. Gesellschaft für Operations Research (ÖGOR);Slovenian Society Informatika - Section for Operational Research;Croatian Operational Research Society, vol. 19(4), pages 589-603, December.

    More about this item

    JEL classification:

    • C6 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling
    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • D51 - Microeconomics - - General Equilibrium and Disequilibrium - - - Exchange and Production Economies
    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
    • D74 - Microeconomics - - Analysis of Collective Decision-Making - - - Conflict; Conflict Resolution; Alliances; Revolutions
    • F10 - International Economics - - Trade - - - General

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