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‘Crooks, thieves, and receivers’: transaction costs in nineteenth‐century industrial Birmingham

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  • FRANCESCA CARNEVALI

Abstract

The existence of cooperation and trust between competing economic agents is taken for granted by much of the literature on industrial districts. This article explores the structure of the Birmingham jewellery‐making district and the problems created by the opportunistic behaviour of many of its members. Archival sources show that the district was plagued by endemic dishonesty and that proximity did not generate trust and cooperation. The absence of barriers to entry into the trade created a district where social sanctions could not be used to reduce moral hazard. All these factors threatened to destroy the district during the crisis of the 1880s. The article shows how firms joined together to create the Birmingham Jewellers Association, to establish and enforce ‘rules of the game’, with the aim of reducing transaction costs.

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  • Francesca Carnevali, 2004. "‘Crooks, thieves, and receivers’: transaction costs in nineteenth‐century industrial Birmingham," Economic History Review, Economic History Society, vol. 57(3), pages 533-550, August.
    • Handle: RePEc:bla:ehsrev:v:57:y:2004:i:3:p:533-550
    DOI: 10.1111/j.1468-0289.2004.00287.x
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    References listed on IDEAS

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    1. Robin Pearson & David Richardson, 2003. "Business networking in the industrial revolution: riposte to some comments," Economic History Review, Economic History Society, vol. 56(2), pages 362-368, May.
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    Cited by:

    1. James Reveley & Simon Ville, 2010. "Enhancing Industry Association Theory: A Comparative Business History Contribution," Journal of Management Studies, Wiley Blackwell, vol. 47(s1), pages 837-858, July.
    2. Robert Lewis, 2009. "Industrial districts and manufacturing linkages: Chicago's printing industry, 1880–19501," Economic History Review, Economic History Society, vol. 62(2), pages 366-387, May.
    3. David Merrett & Simon Ville, 2013. "Institution Building and Variation in the Formation of the Australian Wool Market," Australian Economic History Review, Economic History Society of Australia and New Zealand, vol. 53(2), pages 146-166, July.
    4. Velkar, Aashish, 2007. "Accurate measurements and design standards: consistency of design and the travel of 'facts' between heterogeneous groups," Economic History Working Papers 22518, London School of Economics and Political Science, Department of Economic History.
    5. Aleksandra Zaleśna & Agnieszka Predygier, 2021. "CSR in Clusters: Cluster Social Responsibility," Gospodarka Narodowa. The Polish Journal of Economics, Warsaw School of Economics, issue 3, pages 25-46.

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