Anarchism as a Progressive Research Program in Political Economy

1
Anarchism as a Progressive Research Program in
Political Economy

• Peter J. Boettke
• Hayek Visiting Fellow
• London School of Economics
• October 25, 2004

2
Anarchism as a historical idea in political
philosophy and political economy

• Utopian
• William Godwin, An Enquiry Concerning Political
  Justice (1793)
• Revolutionary
• Mikhail Bakunin and the First International,
  1864-76
• Analytical
• Rothbard (1973)
• Natural rights
• Nozick (1974)
• Invisible hand explanation
• Friedman (1973)
• Efficiency explanations
• Buchanan (1975)
• Social contract theory

3
The Positive Political Economy of Anarchism

• Spontaneous Order and Reputation
• Benson (1989)
• Greif (1989)
• Development Problems
• Dixit (2004)
• Rajan (2004)
• International Trade
• Leeson (2004)
• Predation and Social Order
• Olson (1993), Shleifer, et. al. (2003)
• Leeson (2004)
• Cooperation in Anonymity
• Stringham (2003)
• Leeson (2004)

4
Theories of When Self-Governance Can Occur
Sociological Approach Mainstream Economic Approach Political Approach
The requirements for successful self-governance Dense social ties Small groups Homogenous agents Low discount rates Delegation Low tax rates Government encourages sharing information
5
Mechanisms of Exclusion and Inclusion

• Discipline of Repeated Dealings
• Tullock (1985)
• Exclusion of Cheaters
• Stringham (2003)
• Inclusion of Strangers
• Leeson (2004)

We get much more cooperation in larger group
settings with heterogeneous agents than strict
adherence to game theory might suggest.
Mechanisms of signaling and the communication of
reputation can take place even in large anonymous
settings provided that institutions are in place
which ameliorate problems with cheating, e.g.,
E-Bay.