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The Breakdown of Co-operation in Paradise: The Rise of Anarchy

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Abstract

The previous chapters looked at the contested nature and types of capital in the Paradise story, and how the agents of the story seemingly behaved as self-interested agents. In the following I analyse in finer detail how self-interested agents became involved in interaction conflict over capital arrangements, and how, in turn, this gave rise to a condition that Buchanan’s constitutional economics may term ‘destructive anarchy’ or Williamson’s institutional economics ‘the contracting dilemma’. Buchanan is explicit:

In the strict two-person interaction, enforcement is implemented through the continued threat of having the whole system plunged back into anarchy by any one of the two participants. (Buchanan 1975: 79)

Critical biblical research has arrived at comparable insights:

Genesis 2–3 in a very subtle and skilful way changes into a ‘corruption story’, and the final state of affairs … reflects … a [partial] return to Chaos. (Slivniak 2003: 455)

I contextualize this rise of the anarchic condition through economic interaction theory, which is drawn upon explicitly or implicitly in much institutional and constitutional economics. Specifically, I apply principal-agent theory in this chapter.

Have you eaten from the tree that I commanded you not to eat from?

(Genesis 3: 12)

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© 2015 Sigmund Wagner-Tsukamoto

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Wagner-Tsukamoto, S.A. (2015). The Breakdown of Co-operation in Paradise: The Rise of Anarchy. In: The Economics of Paradise. Palgrave Macmillan, London. https://doi.org/10.1057/9781137287700_6

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