Why Anarchy Will Fail

August 15, 2008

From Paul Krugman:

Angell was right to describe the belief that conquest pays as a great illusion. But the belief that economic rationality always prevents war is an equally great illusion.

From this perspective, behavioral economics gets the last laugh. Even though strictly rational actors would be able to have a functioning anarchy, irrationality dooms the whole endeavor.

Still, assuming no government, would people have the necessary means to make their illusions have harmful effects? Or am I assuming the impossible? Is the very existence of government evidence that people’s false ideas do have an effect on the world?

(HT: Marginal Revolution, Alex Tabarrok)

Advertisements

One Response to “Why Anarchy Will Fail”


  1. I don’t buy the notion that strictly rational actors would be able to have a functioning anarchy, but could be swayed by a peer-reviewed journal article that illustrates this. Illustration via mathematical models acceptable, but I reserve the right to critique the methodologies and assumptions 🙂

    Signed,

    Anarcho-capitalism only works if ALL THINK SAME


Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: