Credible commitment and cartel: the case of the Hansa merchant in the guild of late medieval Tallin
AbstractThis paper contributes to the ongoing debate of institutional research in economics and the methodological debate over the plausibility of using analytic narratives, in social sciences in particular. Using a single historical case we argue that in Tallinn by and large the merchant guild solved a commitment problem in the Hanseatic League and the organisation-institution of the guild was meant for efficient enforcement of inter-city trade. We show that this argument holds in the late medieval period by using an extensive form of punishment and sanctions game. We also argue that after the breakup of the Hanseatic League, guilds turned into protectionist and rent-seeking cartels.
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Bibliographic InfoArticle provided by Baltic International Centre for Economic Policy Studies in its journal Baltic Journal of Economics.
Volume (Year): 10 (2010)
Issue (Month): 1 (June)
economic history; credible commitment; analytic narratives; reputation mechanism; Hanseatic League;
Find related papers by JEL classification:
- C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
- D81 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Criteria for Decision-Making under Risk and Uncertainty
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