Origins of Impersonal Markets in Commercial and Communication Revolutions of Europe

79 Pages Posted: 24 Jul 2017 Last revised: 28 Aug 2018

See all articles by Prateek Raj

Prateek Raj

University College London - School of Management; Indian Institute of Management (IIMB), Bangalore; University of Chicago - George J. Stigler Center for the Study of the Economy and the State

Date Written: August 25, 2018

Abstract

Can technological and economic disruption alter how business fundamentally gets organized? In medieval Europe, trade depended on personal relationships, which were usually mediated by merchant guilds. I construct a dataset of medieval and early modern Europe. I argue that merchant guilds declined and impersonal markets emerged in sixteenth-century Northwestern Europe because the region benefited from two revolutions 1) the commercial revolution at the Atlantic coast and 2) the revolution in horizontal communication because of the printing press.

Keywords: Europe, Printing, Atlantic Trade, Merchant Guilds, Arm's Length Exchange, Networks

JEL Classification: N13, N23, N43, N73, N93, Z13

Suggested Citation

Raj, Prateek, Origins of Impersonal Markets in Commercial and Communication Revolutions of Europe (August 25, 2018). Available at SSRN: https://ssrn.com/abstract=2994833 or http://dx.doi.org/10.2139/ssrn.2994833

Prateek Raj (Contact Author)

University College London - School of Management ( email )

Gower Street
London, WC1E 6BT
United Kingdom

Indian Institute of Management (IIMB), Bangalore ( email )

Bannerghatta Road
Bangalore, Karnataka 560076
India
+918026993123 (Phone)

HOME PAGE: http://www.iimb.ac.in/profile/77

University of Chicago - George J. Stigler Center for the Study of the Economy and the State ( email )

Walker Hall
Chicago, IL 60637
United States

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