Abstract
So the nature of War, consisteth not in actuall fighting; but in the known disposition thereto – Hobbes, Leviathan, Chapter 13 The modern state has monopolized the legitimate use of force. This concept is twofold. First, the state is empowered with enforcement rights; second, the rights of the individuals are restricted. In a simple model of property rights with appropriation and defense activity, we show that a restriction of private enforcement is beneficial for the property owner, even if there are no economies of scale from public protection. We emphasize the role of the state as a commitment device for a certain level of enforcement. However, commitment will only work if the state can regulate private protection, such as private armies and mercenaries. (JEL: K42, P14, P37, P48, N40)
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