SciAm: The Economics of Piracy

[pokerfan]

In the so-called golden age of piracy, spanning the late 17th and early 18th centuries, pirate captains such as Blackbeard and Bartholomew Roberts roamed the seas in search of plunder. Their fearsome exploits became the stuff of lore, inspiring countless films, books, amusement-park rides and, ahem, more films. But those same exploits also fed a reputation that facilitated their activities—a sort of brand name that was widely known and was instantly recognizable by its logo, the Jolly Roger (a black flag with a skull and crossbones).

In a new paper, "Pirational Choice," and in the forthcoming book The Invisible Hook: The Hidden Economics of Pirates, economist Peter Leeson of George Mason University in Fairfax, Va., examines the inner workings of pirate organizations. He makes the case that pirates, far from being the unrestrained barbarians of legend, were actually shrewd businessmen who carefully calculated their actions to increase their haul while minimizing risk and expenditure. Leeson spoke to us recently about his research and how modern-day pirates stack up against their golden-age counterparts. An edited transcript follows.

http://www.sciam.com/article.cfm?id=pirates-rational-choice&print=true">What Would Blackbeard Do? Why Piracy Pays