Optimality and Authority: A Critique of Neoclassical Theory

The extent to which authority is centralized varies greatly across time and space, as the experience of Europe over the past half century illustrates. This article initiates a dialogue between two literatures: the neoclassical theory of authority and the analysis of multi‐level governance. Neoclassical theory examines the tension between the benefits of centralization and the costs of imposing uniformity across diverse territories. It implies that multi‐level governance is the optimal response to this trade‐off. This article critically examines the assumptions of neoclassical theory, and offers some building blocks for an alternative approach.