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Historical Property Rights, Sociality, and the Emergence of Impersonal Exchange in Long-distance Trade

Author

Listed:
  • Erik Kimbrough
  • Vernon Smith
  • Bart Wilson

    (Interdisciplinary Center for Economic Science, George Mason University)

Abstract

This laboratory experiment explores the extent to which impersonal exchange emerges from personal exchange with opportunities for long-distance trade. We design a three-commodity production and exchange economy in which agents in three geographically separated villages must develop multilateral exchange networks to import a third good only available abroad. For treatments, we induce two distinct institutional histories to investigate how past experience with property rights affects the evolution of specialization and exchange. We find that a history of un-enforced property rights hinders our subjects¡¯ ability to develop the requisite personal social arrangements necessary to support specialization and effectively exploit impersonal long-distance trade.

Suggested Citation

  • Erik Kimbrough & Vernon Smith & Bart Wilson, 2006. "Historical Property Rights, Sociality, and the Emergence of Impersonal Exchange in Long-distance Trade," Working Papers 1003, George Mason University, Interdisciplinary Center for Economic Science, revised Oct 2006.
    • Handle: RePEc:gms:wpaper:1003
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    More about this item

    Keywords

    personal exchange; impersonal exchange; long-distance trade; experimental economics;
    All these keywords.

    JEL classification:

    • C92 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Group Behavior
    • D23 - Microeconomics - - Production and Organizations - - - Organizational Behavior; Transaction Costs; Property Rights
    • D51 - Microeconomics - - General Equilibrium and Disequilibrium - - - Exchange and Production Economies
    • F10 - International Economics - - Trade - - - General
    • N70 - Economic History - - Economic History: Transport, International and Domestic Trade, Energy, and Other Services - - - General, International, or Comparative

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