Anarchism as a Progressive Research Program in Political Economy Peter J. Boettke Hayek Visiting Fellow London School of Economics October 25, 2004

Anarchism as a historical idea in political philosophy and political economy Utopian William Godwin, An Enquiry Concerning Political Justice (1793) Revolutionary Mikhail Bakunin and the First International, 1864-76 Analytical Rothbard (1973) Natural rights Nozick (1974) Invisible hand explanation Friedman (1973) Efficiency explanations Buchanan (1975) Social contract theory

The Positive Political Economy of Anarchism Spontaneous Order and Reputation Benson (1989) Greif (1989) Development Problems Dixit (2004) Rajan (2004) International Trade Leeson (2004) Predation and Social Order Olson (1993), Shleifer, et. al. (2003) Cooperation in Anonymity Stringham (2003)

Theories of When Self-Governance Can Occur Sociological Approach Mainstream Economic Approach Political Approach The requirements for successful self-governance Dense social ties Small groups Homogenous agents Low discount rates Delegation Low tax rates Government encourages sharing information

Mechanisms of Exclusion and Inclusion Discipline of Repeated Dealings Tullock (1985) Exclusion of Cheaters Stringham (2003) Inclusion of Strangers Leeson (2004) We get much more cooperation in larger group settings with heterogeneous agents than strict adherence to game theory might suggest. Mechanisms of signaling and the communication of reputation can take place even in large anonymous settings provided that institutions are in place which ameliorate problems with cheating, e.g., E-Bay.