Hostname: page-component-78c5997874-lj6df Total loading time: 0 Render date: 2024-11-13T10:56:37.006Z Has data issue: false hasContentIssue false

Why the West Became Wild

Informal Governance with Incomplete Networks

Published online by Cambridge University Press:  23 August 2017

Get access

Extract

Settlers flocking to boomtowns on the American western frontier were faced with the same task that communities in weak states across the globe face in contemporary times: self-governance. Peer sanctions can enforce cooperation in these environments, but their efficacy depends on the social networks that transmit information from peer to peer. The author uses a game-theoretic model to show that peripheral network positions can generate such strong incentives to misbehave that persistent cheating occurs in equilibrium. The model reveals that groups maintaining high levels of cooperation that face shocks to their strategic environment or to their network can ratchet down into less cooperative equilibria in which the most peripheral become ostracized. Furthermore, population change that features rapid growth, high turnover, and enclave settlements can undermine cooperation. The insights from this article help to explain the trajectory of cooperation in the mining towns of the Wild West in which high levels of cooperation deteriorated as the population surged, and help to make sense of why only certain nonwhite settlers were targets of hostility and racism.

Type
Research Article
Copyright
Copyright © Trustees of Princeton University 2017 

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

References

Acemoglu, Daron, and Wolitzky, Alexander. 2016. “Sustaining Cooperation: Community Enforcement vs. Specialized Enforcement.” Working Paper. At https://economics.mit.edu/files/11671.Google Scholar
Ali, S. Nageeb, and Miller, David A.. 2013. “Enforcing Cooperation in Networked Societies.” Working Paper. At https://dl.dropboxusercontent.com/u/1258389/Website/cliques.pdf.Google Scholar
Ali, S. Nageeb, and Miller, David A.. 2016. “Ostracism and Forgiveness.American Economic Review 106, no. 8: 2329–48. doi: 10.1257/aer.20130768.CrossRefGoogle Scholar
Anderson, Terry L., and Hill, Peter J.. 2004. The Not So Wild, Wild West: Property Rights on the Frontier. Stanford, Calif.: Stanford Economics and Finance.Google Scholar
Balmaceda, Felipe, and Escobar, Juan. 2017. “Trust in Cohesive Communities.Journal of Economic Theory 170, July: 289318. doi: 10.1016/j.jet.2017.05.005.Google Scholar
Cho, Myeonghwan. 2011. “Public Randomization in the Repeated Prisoner's Dilemma Game with Local Interaction.Economics Letters 112, no. 3: 280–82. doi: 10.1016/j.econlet.2011.05.022.Google Scholar
Clay, Karen, and Wright, Gavin. 2005. “Order without Law? Property Rights during the California Gold Rush.Explorations in Economic History 42, no. 2: 155–83. doi: 10.1016/j.eeh.2004.05.003.Google Scholar
Dal Bó, Pedro. 2007. “Social Norms, Cooperation and Inequality.Economic Theory 30, no. 1: 89105. doi: 10.1007/s00199-005-0045-7.Google Scholar
Dary, David. 1998. Red Blood and Black Ink: Journalism in the Old West. Lawrence, Kan.: University of Kansas Press.Google Scholar
Dixit, Avinash K. 2003. “Trade Expansion and Contract Enforcement.Journal of Political Economy 111, no. 6: 12931317. doi: 10.1086/378528.Google Scholar
Dixit, Avinash K. 2004. Lawlessness and Economics: Alternative Modes of Governance. Princeton, N.J.: Princeton University Press.Google Scholar
DuFault, David V. 1959. “The Chinese in the Mining Camps of California: 1848–1870.Historical Society of Southern California Quarterly 41, no. 2: 155–70. doi: 10.2307/41169382.Google Scholar
Ellison, Glenn. 1994. “Cooperation in the Prisoner's Dilemma with Anonymous Random Matching.Review of Economic Studies 61, no. 3: 567–88. doi: 10.2307/2297904.Google Scholar
Enquist, Magnus, and Leimar, Olof. 1993. “The Evolution of Cooperation in Mobile Organisms.Animal Behaviour 45, no. 4: 747–57. doi: 10.1006/anbe.1993.1089.Google Scholar
Fearon, James D., and Laitin, David D.. 1996. “Explaining Interethnic Cooperation.American Political Science Review 90, no. 4: 715–35. doi: 10.2307/2945838.CrossRefGoogle Scholar
Fehr, Ernst, and Fischbacher, Urs. 2004. “Third-Party Punishment and Social Norms.Evolution and Human Behavior 25, no. 2: 6387. doi: 10.1016/S1090-5138(04)00005-4.Google Scholar
Freudenburg, William R. 1986. “The Density of Acquaintanceship: An Overlooked Variable in Community Research?American Journal of Sociology 92, no. 1: 2763. doi: 10.1086/228462.Google Scholar
Ghosh, Parikshit, and Ray, Debraj. 1996. “Cooperation in Community Interaction without Information Flows.Review of Economic Studies 63, no. 3: 491519. doi: 10.2307/2297892.CrossRefGoogle Scholar
Granovetter, Mark S. 1973. “The Strength of Weak Ties.American Journal of Sociology 78, no. 6: 1360–80. doi: 10.1086/225469.CrossRefGoogle Scholar
Greif, Avner. 1993. “Contract Enforceability and Economic Institutions in Early Trade: The Maghribi Traders’ Coalition.American Economic Review 83, no. 3: 525–48. At http://www.jstor.org/stable/2117532.Google Scholar
Haag, Matthew, and Lagunoff, Roger. 2007. “On the Size and Structure of Group Cooperation.Journal of Economic Theory 135, no. 1: 6889. doi: 10.1016/j.jet.2005.08.011.Google Scholar
Habyarimana, James P., Humphreys, Macartan, Posner, Daniel N. and Weinstein, Jeremy M.. 2009. Coethnicity: Diversity and the Dilemmas of Collective Action. Russell Sage Foundation Series on Trust. New York, N.Y.: Russell Sage Foundation Publications.Google Scholar
Halaas, David Fridtjof. 1981. Boom Town Newspapers: Journalism on the Rocky Mountain Mining Frontier, 1859–1881. Santa Fe, N.M.: University of New Mexico Press.Google Scholar
Harrington, Joseph E. Jr. 1995. “Cooperation in a One-Shot Prisoners’ Dilemma.Games and Economic Behavior 8, no. 2: 364–77. doi: 10.1016/S0899-8256(05)80006-5.Google Scholar
Helmke, Gretchen, and Levitsky, Steven. 2004. “Informal Institutions and Comparative Politics: A Research Agenda.Perspectives on Politics 2, no. 4: 725–40. doi: 10.1017/S1537592704040472.Google Scholar
Hollon, W. Eugene. 1974. Frontier Violence: Another Look. New York, N.Y.: Oxford University Press.Google Scholar
Jackson, Matthew O., Rodriguez-Barraquer, Tomas, and Tan, Xu. 2012. “Social Capital and Social Quilts: Network Patterns of Favor Exchange.American Economic Review 102, no. 5: 1857– 97. doi: 10.1257/aer.102.5.1857.Google Scholar
Kandori, Michihiro. 1992. “Social Norms and Community Enforcement.Review of Economic Studies 59, no. 1: 6380. At http://www.jstor.org/stable/2297925.Google Scholar
Laclau, Marie. 2014. “Communication in Repeated Network Games with Imperfect Monitoring.Games and Economic Behavior 87, September: 136–60. doi: 10.1016/j.geb.2014.04.009.Google Scholar
Landa, Janet T. 1981. “A Theory of the Ethically Homogeneous Middleman Group: An Institutional Alternative to Contract Law.Journal of Legal Studies 10, no. 2: 349–62. doi: 10.1086/467685.Google Scholar
Larson, Jennifer M. 2017a. “Networks and Interethnic Cooperation.Journal of Politics 79, no. 2: 546–49. doi: 10.1086/690066.Google Scholar
Larson, Jennifer M. 2017b. Supplementary material for “Why the West Became Wild: Informal Governance with Incomplete Networks.” At https://doi.org/10.1017/S0043887117000181.Google Scholar
Laszlo, Sonia, and Santor, Eric. 2009. “Migration, Social Networks, and Credit: Empirical Evidence from Peru.Developing Economies 47, no. 4: 383409. doi: 10.1111/j.1746-1049.2009.00091.x.Google Scholar
Lippert, Steffen, and Spagnolo, Giancarlo. 2011. “Networks of Relations and Word-of-Mouth Communication.Games and Economic Behavior 72, no. 1: 202–17. doi: 10.1016/j.geb.2010.08.010.Google Scholar
Mann, Ralph. 1972. “The Decade after the Gold Rush: Social Structure in Grass Valley and Nevada City, California, 1850–1860.Pacific Historical Review 41, no. 4: 484504. doi: 10.2307/3638397.Google Scholar
McGrath, Roger D. 1987. Gunfighters, Highwaymen, and Vigilantes: Violence on the Frontier. Los Angeles, Calif.: University of California Press.Google Scholar
Miguel, Edward, and Gugerty, Mary Kay. 2005. “Ethnic Diversity, Social Sanctions, and Public Goods in Kenya.Journal of Public Economics 89, no. 11–12: 2325–68. doi: 10.1016/j.jpubeco.2004.09.004.CrossRefGoogle Scholar
Nava, Francesco. 2016. “Repeated Games and Networks.” In Bramoullé, Yann, Galeotti, Andrea, and Rogers, Brian W., eds., The Oxford Handbook of the Economics of Networks. Oxford, U.K.: Oxford University Press.Google Scholar
Nava, Francesco, and Piccione, Michele. 2014. “Efficiency in Repeated Games with Local Interaction and Uncertain Local Monitoring.Theoretical Economics 9, no. 1: 279312. doi: 10.3982/TE1200.Google Scholar
Okuno-Fujiwara, Masahiro, and Postlewaite, Andrew. 1995. “Social Norms and Random Matching Games.Games and Economic Behavior 9, no. 1: 79109. doi: 10.1006/game.1995.1006.CrossRefGoogle Scholar
Ostrom, Elenor. 1990. Governing the Commons: The Evolution of Institutions for Collective Action. Cambridge, UK: Cambridge University Press.Google Scholar
Pecorino, Paul. 1999. “The Effect of Group Size on Public Good Provision in a Repeated Game Setting.Journal of Public Economics 72, no. 1: 121–34. doi: 10.1016/S0047-2727(98)00091-7.Google Scholar
Prassel, Frank Richard. 1972. The Western Peace Officer: A Legacy of Law and Order. Norman, Okla.: University of Oklahoma Press.Google Scholar
Renault, Jerome, and Tomala, Tristan. 1998. “Repeated Proximity Games.International Journal of Game Theory 27, no. 4: 539–59. doi: 10.1007/s001820050089.CrossRefGoogle Scholar
Shinn, Charles Howard. 1885. Mining Camps: A Study in American Frontier Government. New York, N.Y.: Charles Scribner.Google Scholar
Sommerfeld, Ralf D., Krambeck, Hans-Jürgen, Semmann, Dirk, and Milinski, Manfred. 2007. “Gossip as an Alternative for Direct Observation in Games of Indirect Reciprocity.Proceedings of the National Academy of Sciences of the United States of America 104, no. 44: 17435–40. doi: 10.1073/pnas.0704598104.Google Scholar
Umbeck, John. 1977. “The California Gold Rush: A Study of Emerging Property Rights.Explorations in Economic History 14, no. 3: 197226. doi: 10.1016/0014-4983(77)90006-7.Google Scholar
Wolitzky, Alexander. 2013. “Cooperation with Network Monitoring.Review of Economic Studies 80, no. 1: 395427. doi: 10.1093/restud/rds016ki.Google Scholar
Supplementary material: PDF

Larson supplementary material

Larson supplementary material 1

Download Larson supplementary material(PDF)
PDF 331.1 KB
Supplementary material: File

Larson supplementary material

Larson supplementary material 2

Download Larson supplementary material(File)
File 17.3 KB