PASTORALISM IS AN IMPORTANT INGREDIENT OF THE SARDINIAN RURAL ECONOMY. BECAUSE OF THE PATTERN OF PASTORING, THE SARD TOPOGRAPHY, AND OTHER ECOLOGICAL FACTORS, THE THREAT OF LIVESTOCK THEFT IS PERSISTENT. WHILE ANIMAL THEFT IS REGARDED AS JUSTIFIED UNDER CERTAIN CONDITIONS, THE PASTORAL COMMUNITY RECOGNIZES THAT THEFT CAN PRODUCE INTERPERSONAL AND INTERCOMMUNAL STRIFE. CONSEQUENTLY, THE SARD SHEPHERD COMMUNITY HAS DEVELOPED A NUMBER OF INSTITUTIONS AND PROCEDURES WHICH COMPOSE AN INDIGENOUS LEGAL-POLITICAL SYSTEM TO REGULATE LIVESTOCK THEFT AND MINIMIZE THE RISK OF ESCALATION. GROUPS THAT CAN BE ACTIVATED TO DEAL WITH LIVESTOCK THEFT INCLUDE ACTION GROUPS RECRUITED FROM FAMILY AND FRIENDS OF THE VICTIM, VOLUNTARY MUTUAL AID SOCIETIES ORGANIZED ON A GROUP OR VILLAGE BASIS, VILLAGEWIDE LIVESTOCK INSURANCE ASSOCIATIONS WITH POLICE POWERS, AND RESPECTED ELDERS MOBILIZED TO INTERVENE BETWEEN DISPUTANTS. DISPUTES CAN BE HANDLED THROUGH DIRECT NEGOTIATION BETWEEN DISPUTANTS OR BY MEDIATION, CONCILIATION, OR ARBITRATION. ACTORS IN ALL THE MECHANISMS FOR DEALING WITH THEFT ARE GUIDED BY A SYSTEM OF RULES FOR BEHAVIOR IN RESOLVING DISPUTES. RULES ARE FLEXIBLE, HOWEVER, IN SETTLEMENTS TO PROVIDE FOR DISCRETION IN EACH CASE, WHILE THE DISPUTE SETTLEMENT PROCESS IS UNIFORM. WHATEVER THE MECHANISM USED, THE GOAL IS TO REACH AN AMICABLE SETTLEMENT THAT WILL RESTORE HARMONY. ALTHOUGH THE PASTORAL LEGAL SYSTEM IS VIEWED AS LEGITIMATE AND SATISFACTORY BY THE PASTORAL COMMUNITY, OFFICIAL STATUS IS NOT GRANTED BY THE STATE, WHICH INSISTS UPON EXCLUSIVE JURISDICTION OVER LIVESTOCK THEFT. WHILE THE SARD SHEPHERD ALMOST ALWAYS USES THE INFORMAL SYSTEM ESTABLISHED BY HIS PEERS, THE FORMAL LEGAL SYSTEM, WITH ITS HARSH SANCTIONS, PROVIDES AN INCENTIVE TO MAKE THE INFORMAL SYSTEM PRODUCE A SETTLEMENT. (AUTHOR ABSTRACT MODIFIED--RCB)