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ISBN: 0691114862, 9780691114866Издательство: Princeton University Press
How can property rights be protected and contracts be enforced in countries where the rule of law is ineffective or absent? How can firms from advanced market economies do business in such circumstances? In Lawlessness and Economics , Avinash Dixitexamines the theory of private institutions that transcend or supplement weak economic governance from the state. In much of the world and through much of history, private mechanisms--such as long-term relationships, arbitration, social networks to disseminate information and norms to impose sanctions, and for-profit enforcement services--have grown up in place of formal, state-governed institutions. Even in countries with strong legal systems, many of these mechanisms continue under the shadow of thelaw. Numerous case studies and empirical investigations have demonstrated the variety, importance, and merits and drawbacks of such institutions. This book builds on these studies and constructs a toolkit of theoretical models to...