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Efficient Transactors or Rent- Seeking Monopolists? The Rationale for Early Chartered Trading Companies

In: 40 Years of Research on Rent Seeking 2

Author

Listed:
  • S. R. H. Jones

    (University of Dundee)

  • Simon P. Ville

    (Australian National University)

Abstract

Although the modern multinational corporation is usually regarded as a product of changes in the scale and nature of business that have occurred since the middle of the nineteenth century, there are examples of large, integrated firms dating back to the sixteenth century. Perhaps the most celebrated of these are the English and Dutch East India companies, established in 1600 and 1602, respectively, with a national monopoly of trade with Asia. Other English companies to be granted trading monopoly charters included the Muscovy Company (1553), the Hudson’s Bay Company (1670), and the Royal African Company (1672), and similar rights were granted to foreign companies by the governments of France, Spain, Sweden, and Denmark.

Suggested Citation

  • S. R. H. Jones & Simon P. Ville, 1996. "Efficient Transactors or Rent- Seeking Monopolists? The Rationale for Early Chartered Trading Companies," Springer Books, in: Roger D. Congleton & Kai A. Konrad & Arye L. Hillman (ed.), 40 Years of Research on Rent Seeking 2, pages 509-526, Springer.
    • Handle: RePEc:spr:sprchp:978-3-540-79247-5_29
    DOI: 10.1007/978-3-540-79247-5_29
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