The British Navy's Secret Weapon: Institutional Design and Incentives

This article explores the institutional reasons behind the British Navy's exceptional combat effectiveness from the 17th to 19th centuries. It argues that superior technology wasn't the key, but rather a sophisticated system of incentives designed to prevent admirals from shirking combat. High salaries, a strict promotion system, unique battle tactics (like the line of battle and weather gauge), and harsh Articles of War (including the death penalty) ensured high combat motivation and accountability. The rise of steamships altered naval warfare, ultimately leading to reforms of these systems.