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Economic approaches to conflict tend to focus on its determinants, on the factors influencing its outcome, and on the impacts it has on the distribution of resources. Relatively little attention has been paid to the ways the parties involved structure the internal organization of their efforts during conflict. This paper builds on the theory of contract choice to develop a framework for analyzing military groups. This framework enables us to make predictions about two fundamental aspects of military organization: the characteristics of contracts between military leaders and their charges, and the granting of ownership of military property (weapons, armor, castles, and so on) to charges. These predictions are tested against historical evidence provided by a variety of historical case studies.