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Bridging Monopolies of Power: Foreign Tourism Trade Relations between Germany and Jordan and Constitutional Uncertainty

  • DÖRRY Sabine

International tourism trade relations often operate ?outside? national territorialities of law. In holiday destinations without mass tourism, tour operators usually rely on local service providers to produce the tourist package tour on-site. Because tour operators are not always able to establish effective governance mechanisms with their local service providers, loss of their business ? and in the worst case bankruptcy ? can cause significant economic costs. The paper discusses the efficiency of tour operators? strategies to deal with such constitutional uncertainty and to impose ?self-enforcement?. The extensive empirical case study at hand enriches our understanding of private ordering in the service sector and thus contributes to the conceptual discussion within the New Institutional Economics of International Transactions (NIEIT).

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Paper provided by LISER in its series LISER Working Paper Series with number 2012-17.

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Length: 40 pages
Date of creation: Mar 2012
Date of revision:
Handle: RePEc:irs:cepswp:2012-17
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  1. Eggertsson,Thrainn, 1990. "Economic Behavior and Institutions," Cambridge Books, Cambridge University Press, number 9780521348911, June.
  2. Greif, Avner, 1989. "Reputation and Coalitions in Medieval Trade: Evidence on the Maghribi Traders," The Journal of Economic History, Cambridge University Press, vol. 49(04), pages 857-882, December.
  3. Bjørn Asheim & Lars Coenen & Jan Vang, 2007. "Face-to-face, buzz, and knowledge bases: sociospatial implications for learning, innovation, and innovation policy," Environment and Planning C: Government and Policy, Pion Ltd, London, vol. 25(5), pages 655-670, October.
  4. Henrik Egbert, 2006. "Cross-border Small-scale Trading in South-Eastern Europe: Do Embeddedness and Social Capital Explain Enough?," International Journal of Urban and Regional Research, Wiley Blackwell, vol. 30(2), pages 346-361, 06.
  5. Kronman, Anthony T, 1985. "Contract Law and the State of Nature," Journal of Law, Economics and Organization, Oxford University Press, vol. 1(1), pages 5-32, Spring.
  6. Michael Storper & Anthony J. Venables, 2004. "Buzz: face-to-face contact and the urban economy," Journal of Economic Geography, Oxford University Press, vol. 4(4), pages 351-370, August.
  7. Nancy Leech & Anthony Onwuegbuzie, 2009. "A typology of mixed methods research designs," Quality & Quantity- International Journal of Methodology, Springer, vol. 43(2), pages 265-275, March.
  8. Bjørn, Asheim & Coenen, Lars & Vang, Jan, 2005. "Face-to-Face, Buzz and Knowledge Bases: Socio-spatial implications for learning and innovation policy," Papers in Innovation Studies 2005/18, Lund University, CIRCLE - Center for Innovation, Research and Competences in the Learning Economy.
  9. 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 525-48, June.
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