An Intra-Elite Explanation of Open Access

This chapter provides an explanation of open access based on the conceptual framework of intra-elite competition developed by North et Weingast, Barry al.North, Douglas North, Wallis, and Weingast (Violence and Social Orders. A Conceptual Framework for Interpreting Recorded Human History, Cambridge University Press, 2009). This framework suggests that intra-elite conflicts, rather than revolution led by citizens, is a more likely explanation for the transition to open access. If the transition to open access banking was caused by revolution, as the Handlins, MaierMaier, Pauline , Sylla, and many political and economic historians have suggested, we should observe that the banking sector was largely democratized by the 1790s, with political elites eliminated from the banks and ordinary citizens becoming bankers. However, the evidence suggests that the elites were not eliminated from the banking sector, and bankers were still politically connected and remained wealthy. Intra-elite conflicts moved the banking sector toward de facto free entry.