2 comments on “Economics of Piracy

  1. Do they cover the issue of the effects of piracy on marine trade? I.e. how much is trade reduced when piracy is completely uncontrolled, versus when merchants control piracy themselves (through arming their own fleets, contracting to form convoys, etc.), vs. when piracy is controlled by tax-funded navies?

  2. He doesn’t say much about the effects on trade. I doubt there was much change in the degree to which the merchants armed themselves. The big changes were due to the naval effort to control pirates, but those are inversely correlated with war, and it would be hard to seperate out the effects of war vs peace on trade.
    He does analyze the incentives merchant ships have to resist pirates (hint: the crew has different incentives from the owners).

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