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Bridging Monopolies of Power: Foreign Tourism Trade Relations between Germany and Jordan and Constitutional Uncertainty

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  • DÖRRY Sabine

Abstract

International tourism trade relations often operate ?outside? national territorialities of law. In holiday destinations without mass tourism, tour operators usually rely on local service providers to produce the tourist package tour on-site. Because tour operators are not always able to establish effective governance mechanisms with their local service providers, loss of their business ? and in the worst case bankruptcy ? can cause significant economic costs. The paper discusses the efficiency of tour operators? strategies to deal with such constitutional uncertainty and to impose ?self-enforcement?. The extensive empirical case study at hand enriches our understanding of private ordering in the service sector and thus contributes to the conceptual discussion within the New Institutional Economics of International Transactions (NIEIT).

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Bibliographic Info

Paper provided by CEPS/INSTEAD in its series CEPS/INSTEAD Working Paper Series with number 2012-17.

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Length: 40 pages
Date of creation: Mar 2012
Date of revision:
Handle: RePEc:irs:cepswp:2012-17

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Keywords: International private law; transaction costs; private ordering; tourism; Jordan; Germany;

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  1. Eggertsson,Thrainn, 1990. "Economic Behavior and Institutions," Cambridge Books, Cambridge University Press, number 9780521348911, October.
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  6. Greif, Avner, 1993. "Contract Enforceability and Economic Institutions in Early Trade: the Maghribi Traders' Coalition," American Economic Review, American Economic Association, vol. 83(3), pages 525-48, June.
  7. Greif, Avner, 1989. "Reputation and Coalitions in Medieval Trade: Evidence on the Maghribi Traders," The Journal of Economic History, Cambridge University Press, vol. 49(04), pages 857-882, December.
  8. Kronman, Anthony T, 1985. "Contract Law and the State of Nature," Journal of Law, Economics and Organization, Oxford University Press, vol. 1(1), pages 5-32, Spring.
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