The Colonization Cost Theory of Anarchic Emergence
Journal: The Quarterly Journal of Austrian Economics
Year: 2021

The paper describes the colonization cost theory of anarchic emergence. The theory states that when the state incurs high costs of directly colonizing land, it may be beneficial for it to allow anarchy to emerge and settle distant frontiers. Once enough land is settled by the anarchic community, the state can then use one of the two following strategies: 1) appropriate this land cheaply by a coercive takeover; 2) wait for the anarchic communities to assimilate into the state, given the state’s l