
Contents
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Territorial Disputes Territorial Disputes
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A Model of Territorial Shifts A Model of Territorial Shifts
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An Illustration: The Atacama Desert An Illustration: The Atacama Desert
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Opportunistic Entry Opportunistic Entry
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A Model of Entry Deterrence A Model of Entry Deterrence
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Examples of Successful and Failed Deterrence Examples of Successful and Failed Deterrence
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The Rif State. The Rif State.
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Somaliland. Somaliland.
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Belgium. Belgium.
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The Democratic Political Economy of the Cartel System The Democratic Political Economy of the Cartel System
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A Simple Model A Simple Model
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Democratic Repression in Practice Democratic Repression in Practice
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Democracy and Competition Democracy and Competition
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The Secession of Poor Regions The Secession of Poor Regions
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Outstanding Questions and Potential Limitations Outstanding Questions and Potential Limitations
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Cite
Abstract
Cartels are inherently unstable---plagued by the temptation of their members to cheat and the challenge of deterring entry to their industry by new competitors. And yet the territorial state system has so far proven to be remarkably stable. How do we reconcile this stability with our argument that the territorial state system represents a cartel? We provide some theoretical background to the three threats to cartel stability: conflict, opportunistic entry, and the potential demand for competition in the market for governance that comes with democracy. We argue that the incentives to cooperate are so strong that the system has been able to survive periodic border revisions. They have also been strong enough to incentivize unilateral or bilateral military action to crush new entrants. Furthermore, citizens in a democratic state that redistributes tax revenue back to them may have incentives to preserve the cartel just as strong as those of authoritarian rulers.
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