Exchange, theft, and the social formation of property

B-Tier
Journal: Journal of Economic Behavior and Organization
Year: 2010
Volume: 74
Issue: 3
Pages: 206-229

Score contribution per author:

0.670 = (α=2.01 / 3 authors) × 1.0x B-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

We design a laboratory experiment to explore whether and how property endogenously arises in a specialization and exchange environment where "theft" is costless. Additional treatments make available optional private protection mechanisms. We find that although an absence of exogenous enforcement does not hamper property's emergence in all cases, the private options tend to worsen outcomes on average. Property emerges when subjects self-organize groups, understand potential gains from trade, convince group members that all benefit by avoiding theft, and display credible commitment to cooperation in their actions. In other words, as Hume argued in 1740, property is a convention.

Technical Details

RePEc Handle
repec:eee:jeborg:v:74:y:2010:i:3:p:206-229
Journal Field
Theory
Author Count
3
Added to Database
2026-01-25