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Coasean kidnappings and the bargaining range

Summary:
One of the highest ransoms ever paid — US million for the two Born brothers in Argentina in 1975 — was negotiated by one of the captives himself: Jorge Born.  As a company insider, he knew how much money could be raised, but it still took seven months before his captors were convinced that they had truly squeezed him dry.  When it finally arrived, the father felt he had no option but to accede to the memorandum signed by his son and his kidnappers.  So negotiators work extremely hard to avoid parallel negotiations and bat away unhelpful interventions from the hostage.  It is not surprising that some victims despair. That is from the new and interesting Kidnap: Inside the Ransom Business, by Anja Shortland. The post Coasean kidnappings and the bargaining range appeared first on Marginal

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One of the highest ransoms ever paid — US $60 million for the two Born brothers in Argentina in 1975 — was negotiated by one of the captives himself: Jorge Born.  As a company insider, he knew how much money could be raised, but it still took seven months before his captors were convinced that they had truly squeezed him dry.  When it finally arrived, the father felt he had no option but to accede to the memorandum signed by his son and his kidnappers.  So negotiators work extremely hard to avoid parallel negotiations and bat away unhelpful interventions from the hostage.  It is not surprising that some victims despair.

That is from the new and interesting Kidnap: Inside the Ransom Business, by Anja Shortland.

The post Coasean kidnappings and the bargaining range appeared first on Marginal REVOLUTION.

Tyler Cowen
Tyler Cowen is an American economist, academic, and writer. He occupies the Holbert C. Harris Chair of economics as a professor at George Mason University and is co-author, with Alex Tabarrok, of the popular economics blog Marginal Revolution. Cowen and Tabarrok have also ventured into online education by starting Marginal Revolution University. He currently writes the "Economic Scene" column for the New York Times, and he also writes for such publications as The New Republic, the Wall Street Journal, Forbes, Newsweek, and the Wilson Quarterly.

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