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The Economics of Empire-Building: Predatory and Price Competitions

Antoine Pietri (), Tarik Tazdaït and Mehrdad Vahabi
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Antoine Pietri: CES - Centre d'économie de la Sorbonne - UP1 - Université Paris 1 Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique

Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) from HAL

Abstract: We build a theoretical framework consistent with historical evidence in which empire-building is explained by price and predatory competitions on the market for protection. We explore how the assets structure possessed by the buyers of protection influences the nature of protection and in fine the size of empires. Our main contribution is to introduce a distinction between two types of rent, namely an "absolute" and a "differential" one. The first corresponds to rents extracted by empires using threats and coercion; the second, to economic advantages conferred on subjects of an empire.

Date: 2017
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Published in Journal of Institutional and Theoretical Economics, 2017, 13 (2), pp.253-278. ⟨10.1628/093245616X14659946859954⟩

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Journal Article: The Economics of Empire-Building: Predatory and Price Competitions (2017) Downloads
Working Paper: The Economics of Empire-Building: Predatory and Price Competitions (2017)
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Persistent link: https://EconPapers.repec.org/RePEc:hal:cesptp:hal-01425105

DOI: 10.1628/093245616X14659946859954

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