EconPapers    
Economics at your fingertips  
 

On Modes of Economic Governance

Avinash Dixit ()

Econometrica, 2003, vol. 71, issue 2, 449-481

Abstract: I consider transactions involving asymmetric prisoners' dilemmas between pairs of players randomly selected from two large populations. Games are played repeatedly, but information about cheating is not adequate to sustain cooperation, and there is no official legal system of contract enforcement. I examine how profit--maximizing private intermediation can supply the information and enforcement. I obtain conditions under which private governance can improve upon no governance, and examine why it fails to achieve social optimality. Copyright The Econometric Society 2003.

Date: 2003
References: Add references at CitEc
Citations: View citations in EconPapers (53) Track citations by RSS feed

Downloads: (external link)
http://www.blackwellpublishing.com/ecta/asp/abstract.asp?iid=2&aid=415&vid=71 link to full text (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ecm:emetrp:v:71:y:2003:i:2:p:449-481

Ordering information: This journal article can be ordered from
https://www.economet ... ordering-back-issues

Access Statistics for this article

Econometrica is currently edited by Daron Acemoglu

More articles in Econometrica from Econometric Society Contact information at EDIRC.
Bibliographic data for series maintained by Wiley-Blackwell Digital Licensing ().

 
Page updated 2020-01-20
Handle: RePEc:ecm:emetrp:v:71:y:2003:i:2:p:449-481