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Business Associations and Private Ordering

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  • Prüfer, J.

    (Tilburg University, Tilburg Law and Economics Center)

Abstract

Abstract: We study the capacity of business associations - private, formal, noncommercial organizations designed to promote the common business interests of their members - to support contract enforcement and collective action. Inspired by recent empirical literature, our theoretical framework connects the organizational and institutional features of formal and informal business organization with socioeconomic distance. We show how associations provide value to their members even if members are already embedded in social networks, and which players join an association. We propose explanations for empirical puzzles, put forward novel testable hypotheses, and relate business associations to alternative private ordering institutions.

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Paper provided by Tilburg University, Tilburg Law and Economic Center in its series Discussion Paper with number 2012-011.

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Date of creation: 2012
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Handle: RePEc:dgr:kubtil:2012011

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Web page: https://www.tilburguniversity.edu/research/institutes-and-research-groups/center-ar/

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  5. Prüfer, J., 2011. "On the Evolution of Collective Enforcement Institutions: Communities and Courts," Discussion Paper 2011-017, Tilburg University, Tilburg Law and Economic Center.
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  17. Peter T. Leeson, 2008. "How Important is State Enforcement for�Trade?," American Law and Economics Review, Oxford University Press, vol. 10(1), pages 61-89.
  18. Oliver Volckart & Antje Mangels, 1999. "Are the Roots of the Modern Lex Mercatoria Really Medieval?," Southern Economic Journal, Southern Economic Association, vol. 65(3), pages 427-450, January.
  19. David P. Baron, 2010. "Morally Motivated Self-Regulation," American Economic Review, American Economic Association, vol. 100(4), pages 1299-1329, September.
  20. Jeffrey B. Nugent & Grigor. Sukiassyan, 2009. "Alternative Strategies For Firms In Oppressive And Corrupt States: Informality Or Formality Via Business Associations?," Contemporary Economic Policy, Western Economic Association International, vol. 27(4), pages 423-439, October.
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