law” which placed captains, quartermasters and other crew on an equal “legal” level. Negative externalities is an economic term used to describe the harmful side effects that may result from one’s behaviour. By placing everyone on an equal level, crew members were encouraged to maintain a successful and hard-working ship which would ensure mutual gain. This constitutional democracy seen in 17th and 18th century pirates predated democracy in many countries, including the United States, France, Spain, and “arguably even England”. Signaling An economic phenomenon known as “signaling” is evident in pirate way of life. They use this as a method of capitalisation through a flag known as the “Jolly Roger”. The flag used a skull-and-bones motif which symbolised their way of life. It was so well-known that others who came across the flag knew what it symbolised, which heightened the success of the flag. It devised a way of letting others know they were victim, and encouraged them to surrender without fighting. Pirates also believed that the success of their flags “benefited” their victims as it prevented unnecessary bloodshed and loss of life by encouraging them to surrender. Signaling was seen in other flags besides the Jolly Roger. Many ships used specific flags to identify different crews and what to expect from them. Such reputations maximised their success. Branding This idea of economic reputation was furthered through the use of “brand names”. Pirates were notorious for torturous methods. Victims were often reluctant to reveal treasure, sometimes it was hidden or destroyed. In order to prevent this, pirates created reputations and “brands” of barbarity. Victims grew too scared to be uncooperative, and were forced to reveal their booty. Torture was also used to deter authorities from interfering with their affairs. It was also used as a method of justice in revenge to the merchant ships who abused them. Conscription Pirates would fill their ranks by drafting sailors. These sailors were unwilling members of merchant vessels the pirates overtook, or they were men eager to get away from their own tyrannical situations. Changes to 18th century law made pirating riskier, and in response pirates would pretend to conscript their crews members in an apparent loop hole. They developed their solution to the new laws like businessmen – when rising problems threatened them they used them to their advantage. Tolerance In the 17th and 18th century, British authoritative figures including merchants would enslave