Social Capital and Collusion: The Case of Merchant Guilds
Merchant guilds have been portrayed as “social networks“ that generated beneficial “social capital“ by sustaining shared norms, effectively transmitting information, and successfully undertaking collective action. This social capital, it is claimed, benefited society as a whole by enabling rulers to commit to providing a secure trading environment for alien merchants. But was this really the case? We develop a new model of the emergence, rise, and eventual decline of European merchant guilds, which explores the collusive relationship between rulers and guilds, and calls into question the prevailing positive view of merchant guilds. We then confront the model’s predictions with the available historical data. The empirical evidence strongly supports our model, and refutes existing theories. Our findings show that merchant guilds used their social capital for socially harmful as well as beneficial ends.
|Date of creation:||2003|
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- Dessi, R. & Ogilvie, S., 2004.
"Social Capital and Collusion: The Case of Merchant Guilds,"
Cambridge Working Papers in Economics
0417, Faculty of Economics, University of Cambridge.
- Roberta Dessí & Sheilagh Olgivie, 2003. "Social Capital and Collusion: The Case of Merchant Guilds," CESifo Working Paper Series 1037, CESifo Group Munich.
- Dessi, Roberta & Ogilvie, Sheilagh, 2003. "Social Capital and Collusion : The Case of Merchant Guilds," IDEI Working Papers 214, Institut d'Économie Industrielle (IDEI), Toulouse.
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- Edward L. Glaeser & David Laibson & Bruce Sacerdote, 2002. "An Economic Approach to Social Capital," Economic Journal, Royal Economic Society, vol. 112(483), pages 437-458, November.
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