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The Economics of the Counter-Reformation: Incumbent-Firm Reaction to Market Entry

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Author Info
Robert B. Ekelund
Robert F. Hebert
Robert D. Tollison

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Abstract

The Catholic Church reacted to the Protestant Reformation by taking on the defensive posture of an incumbent-firm monopoly fighting to survive in the face of new competition. Contemporary firms typically respond to rival entry by rewriting their corporate charter. So did the medieval Catholic Church. But the Council of Trent failed as a reorganization plan because to keep economic rents flowing as before, it left intact the distribution of powers and property rights among the governing body of pope and cardinals--thus demonstrating that entrenched economic interests are powerful inducements to behavior, even in spiritual institutions. (JEL N00, D2, D4, D72, P16) Copyright 2004, Oxford University Press.

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File URL: http://hdl.handle.net/10.1093/ei/cbh090
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Publisher Info
Article provided by Oxford University Press in its journal Economic Inquiry.

Volume (Year): 42 (2004)
Issue (Month): 4 (October)
Pages: 690-705
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Handle: RePEc:oup:ecinqu:v:42:y:2004:i:4:p:690-705

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Find related papers by JEL classification:
N00 - Economic History - - General - - - General
D2 - Microeconomics - - Production and Organizations
D4 - Microeconomics - - Market Structure and Pricing
D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Models of Political Processes: Rent-seeking, Elections, Legislatures, and Voting Behavior
P16 - Economic Systems - - Capitalist Systems - - - Political Economy of Capitalism

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This page was last updated on 2009-10-23.

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