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An Economic Analysis of Maritime Piracy and its Control
Author(s) -
Hallwood Paul,
Miceli Thomas J.
Publication year - 2013
Publication title -
scottish journal of political economy
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.4
H-Index - 46
eISSN - 1467-9485
pISSN - 0036-9292
DOI - 10.1111/sjpe.12014
Subject(s) - apprehension , enforcement , control (management) , international trade , international waters , business , law and economics , economics , computer security , law , political science , computer science , management , psychology , cognitive psychology
Abstract Modern‐day piracy on the high seas poses a serious threat to international shipping. This paper develops an economic of model of piracy that emphasizes the strategic interaction between the efforts of pirates to locate potential targets, and shippers to avoid contact. Implementation of optimal enforcement policies is complicated by the need for international cooperation in the apprehension and prosecution of pirates. Free riding and other problems therefore impede the effectiveness of current international laws against piracy.