Combatting Piracy

Combatting Piracy. Combatting Piracy. African pirates living along the Indian Ocean on the coast of Africa have been harassing passing ships for years. They chase a ship with fast boats, board it, take the crew hostage and then negotiate a ransom, which may run into the millions of dollars. You are familiar with this behavior if you saw the Tom Hanks movie, “Captain Phillips”.

Shipping companies and the insurers who insure their ships have tried for a long time to find ways to stop these pirates, with little success. That is because they never took economics and are unfamiliar with the economic tools we have learned.

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Combatting Piracy

Combatting Piracy

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