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Law and Peace: Contracts and the Success of the Danish Dairy Cooperatives

33 Pages Posted: 13 Apr 2011  

Ingrid Henriksen

University of Copenhagen - Department of Economics

Morten Hviid

University of East Anglia - Centre for Competition Policy (CCP)

Paul Richard Sharp

University of Southern Denmark - Department of Business and Economics

Date Written: April, 11 2011

Abstract

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

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

Ingrid Henriksen (Contact Author)

University of Copenhagen - Department of Economics ( email )

Øster Farimagsgade 5
Bygning 26
1353 Copenhagen K.
Denmark

Morten Hviid

University of East Anglia - Centre for Competition Policy (CCP) ( email )

UEA
Norwich Research Park
Norwich, Norfolk NR47TJ
United Kingdom

Paul Richard Sharp

University of Southern Denmark - Department of Business and Economics ( email )

DK-5230 Odense
Denmark

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