Stability and Efficiency in a Model of Production and Pillage

A collective choice model of an environment where a society must allocate but cannot legally enforce property rights over a single indivisible productive asset is studied. There are both production and pillage opportunities for coalitions. A variety of cooperative stability theories (including ones based on farsighted dominance relation) support efficiency in the model. Thus implicit enforcement of property rights through expectations may be sufficient to secure efficiency. Explicit legal enforcement is not necessary