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

42 Pages Posted: 18 Sep 2006

See all articles by Erik O. Kimbrough

Erik O. Kimbrough

Chapman University - The George L. Argyros School of Business & Economics

Vernon L. Smith

Chapman University - Economic Science Institute; Chapman University School of Law

Bart J. Wilson

Chapman University - Smith Institute for Political Economy and Philosophy; Chapman University - Economic Science Institute (ESI); Chapman University, The Dale E. Fowler School of Law

Date Written: October 2006

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 affect 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.

Keywords: personal exchange, impersonal exchange, long-distance trade, experimental economics

JEL Classification: C92, D23, D51, F10, N70

Suggested Citation

Kimbrough, Erik O. and Smith, Vernon L. and Wilson, Bart J., Historical Property Rights, Sociality, and the Emergence of Impersonal Exchange in Long-Distance Trade (October 2006). Available at SSRN: https://ssrn.com/abstract=930520 or http://dx.doi.org/10.2139/ssrn.930520

Erik O. Kimbrough

Chapman University - The George L. Argyros School of Business & Economics ( email )

One University Dr
Orange, CA 92866
United States

Vernon L. Smith

Chapman University - Economic Science Institute ( email )

One University Dr.
Orange, CA 92866
United States
714-628-2830 (Phone)

Chapman University School of Law ( email )

One University Drive
Orange, CA 92866-1099
United States

Bart J. Wilson (Contact Author)

Chapman University - Smith Institute for Political Economy and Philosophy ( email )

One University Drive
Orange, CA 92866
United States
(714) 628-7306 (Phone)

HOME PAGE: http://www1.chapman.edu/~bjwilson/

Chapman University - Economic Science Institute (ESI) ( email )

One University Drive
Orange, CA 92866
United States
(714) 628-7306 (Phone)

Chapman University, The Dale E. Fowler School of Law ( email )

One University Drive
Orange, CA 92866-1099
United States
(714) 628-7306 (Phone)

HOME PAGE: http://www1.chapman.edu/~bjwilson/

Here is the Coronavirus
related research on SSRN

Paper statistics

Downloads
219
Abstract Views
1,714
rank
152,615
PlumX Metrics