The Economics of Desecration: Flag Burning and Related Activities.

Eric Bennett Rasmusen, Kelley School of Business, Indiana University

Abstract

When a symbol is desecrated, the desecrator obtains benefits while those who venerate the symbol incur costs. The approach to policy used in this paper is to ask whether the benefits are likely to exceed the costs. I conclude that they usually do not. Desecration is often motivated by a desire to reduce the utility of others, which generally is inefficient. Also, if desecration occurs, people have less incentive to create and maintain symbols. Symbols, like other produced goods, need property- rights protection if the outcome is to be efficient. Laws against desecration are a good way to provide this protection, given the likely failure of the Coase Theorem and the possibility of efficient breaking of the laws.