Existing studies of property rights primarily examine state actions (expropriation vs. protection), overlooking firms' demand for legal solutions.

This paper argues that while states provide formal institutions, they do not always ensure firm reliance on the law; often, private actors turn to illegal tactics like violence or corruption instead.

Firm strategies are influenced by three factors: their beliefs about legal obstacles, effectiveness of informal methods, and expectations regarding other firms' approaches. Data comes from interviews with Russian business owners, lawyers, and security agencies, alongside a new survey.

Contrary to previous trends, evidence shows growing Russian firm reliance on state institutions for property rights over the past two decades.

This suggests that effective rule of law implementation requires attention not just to states but also to evolving private sector strategies.