Overlapping Jurisdictions, Proprietary Communities, and Competition in the Realm of Law
2006; Mohr Siebeck Verlag; Volume: 162; Issue: 3 Linguagem: Inglês
10.1628/093245606778387348
ISSN1614-0559
Autores Tópico(s)Experimental Behavioral Economics Studies
ResumoFREY [2001] and others propose subjecting governments to competition within their jurisdiction,but classical liberalsargue that having competing law enforcers cannot work. This article describes a hybrid system that relies on markets but has one lawenforcementagencyper region,withprofit motivatedproprietorspolicing their properties. Vertically integrated proprietary communities wishing to attract customers would need to police their property in a way that patrons desire. Although a monopoly on the use of force would exist, bundling law with real estate makes the law enforcer the residual claimant and creates incentives for them to not to expropriate their clientele. (JEL: D 740, H 100, K 400, L 330)
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