IDEAS home Printed from https://ideas.repec.org/p/exe/wpaper/2503.html
   My bibliography  Save this paper

Doux Commerce: Markets, Culture, and Cooperation in 1850-1920 U.S

Author

Listed:
  • Max Posch

    (Department of Economics, University of Exeter)

  • Itzchak Tzachi Raz

    (Department of Economics, Hebrew University of Jerusalem)

Abstract

We study how rising market integration shaped cooperative culture and behavior in the 1850–1920 United States. Leveraging plausibly exogenous changes in county-level market access driven by railroad expansion and population growth, we show that increased market access fostered universalism, tolerance, and generalized trust—traits supporting cooperation with strangers—and shifted cooperation away from kin-based ties toward more generalized forms. Individual-level analyses of migrants reveal rapid cultural adaptation after moving to more market-integrated places, especially among those exposed to commerce. These effects are unlikely to be explained by changes in population diversity, economic development, access to information, or legal institutions.

Suggested Citation

  • Max Posch & Itzchak Tzachi Raz, 2025. "Doux Commerce: Markets, Culture, and Cooperation in 1850-1920 U.S," Discussion Papers 2503, University of Exeter, Department of Economics.
  • Handle: RePEc:exe:wpaper:2503
    as

    Download full text from publisher

    File URL: https://exetereconomics.github.io/RePEc/dpapers/DP2503.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Jha, Saumitra, 2013. "Trade, Institutions, and Ethnic Tolerance: Evidence from South Asia," American Political Science Review, Cambridge University Press, vol. 107(4), pages 806-832, November.
    2. Gustav Agneman & Esther Chevrot-Bianco, 2023. "Market Participation and Moral Decision-Making: Experimental Evidence from Greenland," The Economic Journal, Royal Economic Society, vol. 133(650), pages 537-581.
    3. Benjamin Enke, 2019. "Kinship, Cooperation, and the Evolution of Moral Systems," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 134(2), pages 953-1019.
    4. Dave Donaldson, 2018. "Railroads of the Raj: Estimating the Impact of Transportation Infrastructure," American Economic Review, American Economic Association, vol. 108(4-5), pages 899-934, April.
    5. Diego Ramos-Toro, 2023. "Social Exclusion and Social Preferences: Evidence from Colombia's Leper Colony," American Economic Review, American Economic Association, vol. 113(5), pages 1294-1333, May.
    6. Fabian Kosse & Thomas Deckers & Pia Pinger & Hannah Schildberg-Hörisch & Armin Falk, 2020. "The Formation of Prosociality: Causal Evidence on the Role of Social Environment," Journal of Political Economy, University of Chicago Press, vol. 128(2), pages 434-467.
    7. Jha, Saumitra & Shayo, Moses & Weiss, Chagai M., 2025. "Financial market exposure increases generalized trust," Journal of Public Economics, Elsevier, vol. 242(C).
    8. 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 525-548, June.
    9. Arthur Blouin, 2022. "Culture and Contracts: The Historical Legacy of Forced Labour," The Economic Journal, Royal Economic Society, vol. 132(641), pages 89-105.
    10. Kirill Borusyak & Xavier Jaravel & Jann Spiess, 2024. "Revisiting Event-Study Designs: Robust and Efficient Estimation," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 91(6), pages 3253-3285.
    11. Sara Lowes & Eduardo Montero, 2021. "Concessions, Violence, and Indirect Rule: Evidence from the Congo Free State," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 136(4), pages 2047-2091.
    12. Jacob Moscona & Nathan Nunn & James A. Robinson, 2020. "Segmentary Lineage Organization and Conflict in Sub‐Saharan Africa," Econometrica, Econometric Society, vol. 88(5), pages 1999-2036, September.
    13. Patrick François & Thomas Fujiwara & Tanguy van Ypersele, 2018. "The origins of human prosociality: Cultural group selection in the workplace and the laboratory," Post-Print hal-01980632, HAL.
    14. Nathan Nunn & Leonard Wantchekon, 2011. "The Slave Trade and the Origins of Mistrust in Africa," American Economic Review, American Economic Association, vol. 101(7), pages 3221-3252, December.
    15. Rupasingha, Anil & Goetz, Stephan J. & Freshwater, David, 2006. "The production of social capital in US counties," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 35(1), pages 83-101, February.
    16. Gautam Rao, 2019. "Familiarity Does Not Breed Contempt: Generosity, Discrimination, and Diversity in Delhi Schools," American Economic Review, American Economic Association, vol. 109(3), pages 774-809, March.
    17. Sun, Liyang & Abraham, Sarah, 2021. "Estimating dynamic treatment effects in event studies with heterogeneous treatment effects," Journal of Econometrics, Elsevier, vol. 225(2), pages 175-199.
    18. Goodman-Bacon, Andrew, 2021. "Difference-in-differences with variation in treatment timing," Journal of Econometrics, Elsevier, vol. 225(2), pages 254-277.
    19. Sara Lowes & Nathan Nunn & James A. Robinson & Jonathan L. Weigel, 2017. "The Evolution of Culture and Institutions: Evidence From the Kuba Kingdom," Econometrica, Econometric Society, vol. 85, pages 1065-1091, July.
    20. Guido Tabellini, 2008. "The Scope of Cooperation: Values and Incentives," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 123(3), pages 905-950.
    21. Matt Lowe, 2021. "Types of Contact: A Field Experiment on Collaborative and Adversarial Caste Integration," American Economic Review, American Economic Association, vol. 111(6), pages 1807-1844, June.
    22. Chan, Jeff, 2022. "Farming output, concentration, and market access: Evidence from the 19th-century American railroad expansion," Journal of Development Economics, Elsevier, vol. 157(C).
    23. Metzer, Jacob, 1974. "Railroad Development and Market Integration: The Case of Tsarist Russia," The Journal of Economic History, Cambridge University Press, vol. 34(3), pages 529-550, September.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Arthur Blouin & Julian Dyer, 2021. "How Cultures Converge: An Empirical Investigation of Trade and Linguistic Exchange," Working Papers tecipa-691, University of Toronto, Department of Economics.
    2. Fenske, James & Gupta, Bishnupriya & Mukhopadhyay, Anwesh, 2025. "Colonial Persistence," CAGE Online Working Paper Series 752, Competitive Advantage in the Global Economy (CAGE).
    3. Alberto Alesina & Marco Tabellini, 2024. "The Political Effects of Immigration: Culture or Economics?," Journal of Economic Literature, American Economic Association, vol. 62(1), pages 5-46, March.
    4. Leonardo M. Klüppel & Lamar Pierce & Jason A. Snyder, 2018. "Perspective—The Deep Historical Roots of Organization and Strategy: Traumatic Shocks, Culture, and Institutions," Organization Science, INFORMS, vol. 29(4), pages 702-721, August.
    5. P. Buonanno & M. Cervellati & S. Lazzaroni & G. Prarolo, 2022. "Historical social contracts and their legacy: a disaggregated analysis of the medieval republics," Journal of Economic Growth, Springer, vol. 27(4), pages 485-526, December.
    6. Schläpfer, Alain, 2024. "Cross-cultural differences in retaliation: Evidence from the soccer field," Journal of Economic Behavior & Organization, Elsevier, vol. 223(C), pages 216-233.
    7. Deng, Xin & Yu, Mingzhe, 2021. "Scale of cities and social trust: Evidence from China," International Review of Economics & Finance, Elsevier, vol. 76(C), pages 215-228.
    8. Leopoldo Fergusson & José-Alberto Guerra & James A. Robinson, 2024. "Anti-social norms," NBER Working Papers 32717, National Bureau of Economic Research, Inc.
      • Leopoldo Fergusson & Jos√©-Alberto Guerra & James A. Robinson, 2024. "Anti-social norms," Documentos CEDE 21159, Universidad de los Andes, Facultad de Economía, CEDE.
    9. Buonanno, Paolo & Plevani, Giacomo & Puca, Marcello, 2023. "Earthquake hazard and civic capital," European Journal of Political Economy, Elsevier, vol. 78(C).
    10. Leander Heldring, 2019. "The Origins of Violence in Rwanda," HiCN Working Papers 299, Households in Conflict Network.
    11. Karaja, Elira & Rubin, Jared, 2022. "Θ The cultural transmission of trust norms: Evidence from a lab in the field on a natural experiment," Journal of Comparative Economics, Elsevier, vol. 50(1), pages 1-19.
    12. Santiago Paz, 2023. "Long Run Consequences of Ethnic Conflict On Social Capital: Evidence from South Africa," Documentos CEDE 20923, Universidad de los Andes, Facultad de Economía, CEDE.
    13. Calvi, Rossella & Mantovanelli, Federico G., 2018. "Long-term effects of access to health care: Medical missions in colonial India," Journal of Development Economics, Elsevier, vol. 135(C), pages 285-303.
    14. Bertinelli, Luisito & Cömertpay, Rana & Maystadt, Jean-François, 2025. "Ethnic diversity and conflict in sub-Saharan Africa: Evidence from refugee-hosting areas," Journal of Development Economics, Elsevier, vol. 172(C).
    15. Cai, Yang & Zhu, Jiong, 2024. "Cooperative culture and the birth of modern enterprises in China: Evidence from the signing of the Treaty of Shimonoseki," European Economic Review, Elsevier, vol. 163(C).
    16. Natalie Bau & Gaurav Khanna & Corinne Low & Alessandra Voena, 2023. "Traditional Institutions in Modern Times: Dowries as Pensions When Sons Migrate," NBER Working Papers 31176, National Bureau of Economic Research, Inc.
    17. Arne Henningsen & Guy Low & David Wuepper & Tobias Dalhaus & Hugo Storm & Dagim Belay & Stefan Hirsch, 2024. "Estimating Causal Effects with Observational Data: Guidelines for Agricultural and Applied Economists," IFRO Working Paper 2024/03, University of Copenhagen, Department of Food and Resource Economics.
    18. Bradford, Ashley C. & Fu, Wei & You, Shijun, 2024. "The devastating dance between opioid and housing crises: Evidence from OxyContin reformulation," Journal of Health Economics, Elsevier, vol. 98(C).
    19. Owen Fleming & Lilly Springer, 2025. "The Spillover Effects of Nurse Practitioner Scope of Practice Expansions on Safety Net Program Participation: Evidence from WIC," WORKING PAPERS SERIES IN THEORETICAL AND APPLIED ECONOMICS 202506, University of Kansas, Department of Economics, revised Mar 2025.
    20. Sara Lowes & Etienne Le Rossignol, 2022. "Ancestral Livelihoods and Moral Universalism: Evidence from Transhumant Pastoralist Societies," Working Papers hal-04083412, HAL.

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;
    ;
    ;

    JEL classification:

    • Z10 - Other Special Topics - - Cultural Economics - - - General
    • Z13 - Other Special Topics - - Cultural Economics - - - Economic Sociology; Economic Anthropology; Language; Social and Economic Stratification
    • N71 - Economic History - - Economic History: Transport, International and Domestic Trade, Energy, and Other Services - - - U.S.; Canada: Pre-1913
    • N72 - Economic History - - Economic History: Transport, International and Domestic Trade, Energy, and Other Services - - - U.S.; Canada: 1913-
    • R49 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Other

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:exe:wpaper:2503. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sebastian Kripfganz (email available below). General contact details of provider: https://edirc.repec.org/data/deexeuk.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.