{"id":6928,"date":"2012-11-24T09:00:43","date_gmt":"2012-11-24T14:00:43","guid":{"rendered":"http:\/\/www.Centives.net\/S\/?p=6928"},"modified":"2012-11-24T01:13:58","modified_gmt":"2012-11-24T06:13:58","slug":"the-economics-of-pirate-negotiations","status":"publish","type":"post","link":"http:\/\/www.Centives.net\/S\/2012\/the-economics-of-pirate-negotiations\/","title":{"rendered":"The Economics Of Pirate Negotiations"},"content":{"rendered":"<p style=\"text-align: center;\"><img loading=\"lazy\" decoding=\"async\" src=\"http:\/\/www.Centives.net\/S\/wp-content\/uploads\/2012\/11\/112412_0017_TheEconomic1.jpg\" alt=\"\" width=\"640\" height=\"425\" \/><\/p>\n<p>The Economist looked at the economics of pirate negotiations:<\/p>\n<ul>\n<li>Government intervention can alter incentives. After Spain paid $1.2 million for a fishing boat, it set a new price floor which every subsequent pirate expected.<\/li>\n<li>Both parties are interested in a speedy resolution and ransom payment. The pirates don&#8217;t want to spend too many days guarding the boat and feeding the crew. The ship owners don&#8217;t want their goods to spoil, or for the ship to remain inactive.<\/li>\n<li>During negotiations pirates also pretend to be more sophisticated than they really are, and ship-owners pretend to be poorer in an attempt to strengthen bargaining positions.<\/li>\n<li>The number of ships taken by pirates <a href=\"http:\/\/www.centives.net\/S\/2012\/has-piracy-come-to-an-end\/\">might be declining<\/a>, but the average value of each ransom payout has increased.<\/li>\n<\/ul>\n<p>Read more about how things have changed in pirate negotiations since the 1500s and the background of the study over <a href=\"http:\/\/www.economist.com\/news\/finance-and-economics\/21567077-how-negotiate-pirates-horn-africa-bargain-somali\">here<\/a>.<\/p>\n<p>Source: <a href=\"http:\/\/www.economist.com\/news\/finance-and-economics\/21567077-how-negotiate-pirates-horn-africa-bargain-somali\">The Economist<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Economist looked at the economics of pirate negotiations: Government intervention can alter incentives. After Spain paid $1.2 million for a fishing boat, it set a new price floor which every subsequent pirate expected. Both parties are interested in a speedy resolution and ransom payment. The pirates don&#8217;t want to spend too many days guarding [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":6927,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-6928","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-daily-bulletin"],"jetpack_featured_media_url":"http:\/\/www.Centives.net\/S\/wp-content\/uploads\/2012\/11\/112412_0017_TheEconomic1.jpg","_links":{"self":[{"href":"http:\/\/www.Centives.net\/S\/wp-json\/wp\/v2\/posts\/6928","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/www.Centives.net\/S\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/www.Centives.net\/S\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/www.Centives.net\/S\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"http:\/\/www.Centives.net\/S\/wp-json\/wp\/v2\/comments?post=6928"}],"version-history":[{"count":6,"href":"http:\/\/www.Centives.net\/S\/wp-json\/wp\/v2\/posts\/6928\/revisions"}],"predecessor-version":[{"id":6933,"href":"http:\/\/www.Centives.net\/S\/wp-json\/wp\/v2\/posts\/6928\/revisions\/6933"}],"wp:featuredmedia":[{"embeddable":true,"href":"http:\/\/www.Centives.net\/S\/wp-json\/wp\/v2\/media\/6927"}],"wp:attachment":[{"href":"http:\/\/www.Centives.net\/S\/wp-json\/wp\/v2\/media?parent=6928"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/www.Centives.net\/S\/wp-json\/wp\/v2\/categories?post=6928"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/www.Centives.net\/S\/wp-json\/wp\/v2\/tags?post=6928"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}