Specialization as a Specific Investment Into the Market: A Transaction Cost Approach to the Rise of Markets and Towns in Medieval Germany
AbstractIn the period from the 9th to the 12th century, Germany witnessed essential steps from a backward agrarian society towards a considerable degree of specialization and trade. The two main institutional innovations of this development were the rise of market places (until the 11th century) and then the rise of free towns (12th century). This paper revisits the famous 19th century debate on the origin of marketplaces and towns with the tools of transaction cost economics. The evolution of the governance of market places and the founding of the free medieval towns is explained by the growing needs of townsmen to invest specifically into the market place in an environment of growing trade flows and of an increasing relative efficiency of specialized production technologies.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Bibliographic InfoArticle provided by Mohr Siebeck, Tübingen in its journal Journal of Institutional and Theoretical Economics.
Volume (Year): 155 (1999)
Issue (Month): 4 (December)
Contact details of provider:
Web page: http://www.mohr.de/jite
Postal: Mohr Siebeck GmbH & Co. KG, P.O.Box 2040, 72010 Tübingen, Germany
Find related papers by JEL classification:
- L22 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Organization and Market Structure
- N20 - Economic History - - Financial Markets and Institutions - - - General, International, or Comparative
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Masten, S.E. & Prüfer, J., 2011.
"On the Evolution of Collective Enforcement Institutions: Communities and Courts,"
2011-074, Tilburg University, Center for Economic Research.
- Prüfer, J., 2011. "On the Evolution of Collective Enforcement Institutions: Communities and Courts," Discussion Paper 2011-017, Tilburg University, Tilburg Law and Economic Center.
- Felix Butschek, 2000. "Europa und die Industrielle Revolution," Wirtschaft und Gesellschaft - WuG, Kammer für Arbeiter und Angestellte für Wien, Abteilung Wirtschaftswissenschaft und Statistik, vol. 26(2), pages 261-280.
- Felix Butschek, . "Europe and the Industrial Revolution," WIFO Working Papers 149, WIFO.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Thomas Wolpert).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.