Self-interest seeking leads stronger individuals to plunder weaker ones. But could it also lead them to do so in ways that minimize plunder's social inefficiency? We argue that when contracts between enemies are enforceable and transaction costs are low, plunderers and their victims benefit from...

This paper argues that when contracts between enemies are enforceable and transaction costs are low, plunderers and their victims benefit from trade that facilitates the former's ability to plunder the latter. Coasean "plunder contracts" transform part of plunder's social costs into private...