Aldashev, Gani; Zanarone, Giorgio - Faculté des Sciences Économiques, Sociales et de … - 2014
We model the State as a self-enforcing agreement over the use of force. A principal contracts with an agent, and a powerful ruler enforces their contracts through a mix of monetary fines and coercion. If the ruler fails to enforce, or if he uses his power to expropriate, all parties revert to...