The Role and Evolution of Central Authorities

Tinbergen Institute Working Paper No. 99-053/1

41 Pages Posted: 16 Feb 2000

See all articles by Paul Frijters

Paul Frijters

Queensland University of Technology - School of Economics and Finance

Alexander F. Tieman

International Monetary Fund (IMF)

Date Written: Summer 1999

Abstract

In this paper we argue that authorities aid cooperation by means of direct coordination or the enforcement of pre-commitment devices such as contract laws.Credible threats of violence allow this role. In a local interaction model, an authority forms if mutually connected individuals with sufficient combined punishment potential have signalled their willingness to form such an authority, conditional upon the willigness of others to do so. Given a specific timing of decisions, we analyse the conditions under which authorities arise and under which they evolve into a stationary state with only one or several remaining authorities.

JEL Classification: B25, C7, D62, D70, H1, H4

Suggested Citation

Frijters, Paul and Tieman, Alexander F., The Role and Evolution of Central Authorities (Summer 1999). Tinbergen Institute Working Paper No. 99-053/1, Available at SSRN: https://ssrn.com/abstract=202035 or http://dx.doi.org/10.2139/ssrn.202035

Paul Frijters (Contact Author)

Queensland University of Technology - School of Economics and Finance ( email )

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HOME PAGE: http://www.bus.qut.edu.au/paulfrijters/index.jsp

Alexander F. Tieman

International Monetary Fund (IMF) ( email )

700 19th Street NW
Washington, DC 20431
United States

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