What the study found
The paper finds that competition between two metropolises over a colony's trade policy can lead to different equilibrium outcomes. Depending on how each metropolis values trade with the colony versus trade with the other metropolis, the result can be peace with free trade or war with restricted colonial access.
Why the authors say this matters
The authors say the model captures key features of the mercantilist era, including overseas commerce, colonial conflicts, and restrictive trade policies. The study suggests this framework also provides insights into the eventual decline of mercantilism.
What the researchers tested
The researchers developed a model of colonial wars and trade restrictions in which two metropolises compete for control over a colony's trade policy. They examined equilibrium outcomes under different preferences for colonial trade and mutual trade.
What worked and what didn't
The model yields three equilibrium outcomes: peace with free trade when both metropolises value trade with each other more than colonial trade; war with exclusive colonial trade when both prefer colonial trade to mutual trade; and war with either free or exclusive colonial trade depending on whether the victor prioritizes trade with its rival over colonial trade. The abstract does not report empirical tests.
What to keep in mind
The abstract describes a theoretical model, not an empirical study. Limitations are not described in the available summary.
Key points
- Two metropolises compete for control over a colony's trade policy in the model.
- The model allows for either peace with free trade or war with restricted colonial access.
- Exclusive colonial trade can emerge when both metropolises prefer colonial trade to trade with each other.
- The authors say the model captures central features of the mercantilist era.
- The abstract does not describe empirical testing or study limitations.
Disclosure
- Research title:
- A model links colonial war, trade restrictions, and exclusive trading rights
- Authors:
- Ivan G. Lopez Cruz, Gustavo Torrens
- Institutions:
- Sabancı Üniversitesi, Indiana University
- Publication date:
- 2026-03-10
- OpenAlex record:
- View
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