Monateri's Theorem on SSRN
The aim of this theorem is to analyse what does it happen when we introduce “violence”, threats and self-help, into economic models. This is done considering the alternative between a market or a political allocation. The conclusions are:
a) That under standard assumptions there is no difference between a market allocation and a political allocation; and so that there is no inner superiority in a market allocation in comparison with a political one
b) that if we move away from these standard assumptions, then the only real economic problem becomes a “political” problem, and that there cannot be efficient conclusions which are independent from an initial allocation of force and resources.
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