33 Pages Posted: 13 Apr 2011
Date Written: April, 11 2011
We consider the successful early emergence of cooperative creameries in Denmark in the late nineteenth century within the framework of the ‘new institutional economics’ presented by Williamson (2000). Previous work has focused on the social cohesion of the Danes, but we demonstrate that this was not sufficient for the success. The Danish legal system, which we compare to that of other countries, was also of crucial importance, along with the way in which rules were monitored and enforced. Of particular importance was the Danish cooperatives’ use of contracts, which we explore with evidence from a variety of primary and secondary sources.
Keywords: cooperatives, creameries, contracts, new institutional economics
JEL Classification: K12, L31, N43, N53, Q13
Suggested Citation: Suggested Citation
Henriksen, Ingrid and Hviid, Morten and Sharp, Paul Richard, Law and Peace: Contracts and the Success of the Danish Dairy Cooperatives (April, 11 2011). Univ. of Copenhagen Dept. of Economics Discussion Paper No. 11-11. Available at SSRN: https://ssrn.com/abstract=1806935 or http://dx.doi.org/10.2139/ssrn.1806935