Article ID Journal Published Year Pages File Type
5060521 Economics Letters 2011 4 Pages PDF
Abstract
► Even risk-neutral merchants can self-insure against piracy. ► Such self-insurance is invulnerable to moral hazard. ► Intense patrolling and/or penalties, along with self-insurance, eliminates piracy. ► Insufficient patrolling weakens self-insurance.
Keywords
Related Topics
Social Sciences and Humanities Economics, Econometrics and Finance Economics and Econometrics
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Pirates and traders: Some economics of pirate-infested seas
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