Pirates overcame the free-rider problem of the reputational benefit of mercy (which otherwise mainly helps the next crew) through captain- and crew-specific reputations and distinctive Jolly Roger designs, allowing them to internalize the benefit; Blackbeard's reputation was so effective that, per the leading historian, he apparently never actually killed anyone.

causalpending

Speaker

Peter Leeson

Evidence Quote

the different Jolly Rogers that the crews would fly was another way that crews would help to internalize that benefit of being a stronger crew largely... overcame the collective-action problem

Source

Peter Leeson on Pirates and the Invisible Hook 05/25/2009EconTalk
Created: 6/17/2026, 10:31:31 AM

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