Enforcing Cooperation Among Medieval Merchants: The Maghribi Traders Revisited

37 Pages Posted: 22 Jan 2007

See all articles by David Harbord

David Harbord

Market Analysis Ltd; Ferdescol.org

Date Written: November 8, 2006

Abstract

We revisit Greif's (1993) analysis of trade between the 11th-century Maghribi traders and present two different models which bring into play, in an essential way, historical features of the Maghribi's organization which had no role in Greif's own analysis. Our reformulation of the Maghribi's punishment strategies incorporates principal components of their actual historical practice and explains why they may have been necessary to sustain cooperation, especially in the presence of uncertainty or imperfect information. We also model formal friendships, or trade through bilateral and multilateral partnerships, and predict the Maghribi's practice of providing agency services without pecuniary compensation. We are thus able to provide a richer and more accurate picture of how that organization facilitated trade between widely-dispersed traders in the absence of a reliable legal system to enforce merchant contracts.

Keywords: cooperation, enforcement, trade, institutions

JEL Classification: C72, D23, J41, N75

Suggested Citation

Harbord, David, Enforcing Cooperation Among Medieval Merchants: The Maghribi Traders Revisited (November 8, 2006). Available at SSRN: https://ssrn.com/abstract=958617 or http://dx.doi.org/10.2139/ssrn.958617

David Harbord (Contact Author)

Market Analysis Ltd ( email )

34 Great Clarendon St
Oxford, OX26AT
United Kingdom

HOME PAGE: http://market-analysis.co.uk/

Ferdescol.org ( email )

Avenida 82 No. 10 – 62, Piso 6
Bogotá
Colombia

HOME PAGE: http://www.ferdescol.org/

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