How Community Institutions Create Economic Advantage: Jewish Diamond Merchants in New York

@article{Richman2006HowCI,
  title={How Community Institutions Create Economic Advantage: Jewish Diamond Merchants in New York},
  author={Barak D Richman},
  journal={Law \&\#x0026; Social Inquiry},
  year={2006},
  volume={31},
  pages={383 - 420}
}
  • Barak D Richman
  • Published 1 June 2006
  • Economics, History
  • Law & Social Inquiry
This article argues that Jewish merchants have historically dominated the diamond industry because of their ability to reliably implement diamond credit sales. Success in the industry requires enforcing executory agreements that are beyond the reach of public courts, and Jewish diamond merchants enforce such contracts with a reputation mechanism supported by a distinctive set of industry, family, and community institutions. An industry arbitration system publicizes promises that are not kept… 
Ethnic Networks, Extralegal Certainty, and Globalisation: Peering into the Diamond Industry
For nearly one millenium, the diamond industry's distribution system remained largely unchanged. Ethnic networks, predominated by Jewish merchants, managed the downstream distribution system. Since
DEFYING MERCANTILISM: ILLICIT TRADE, TRUST, AND THE JAMAICAN SEPHARDIM, 1660–1730
Abstract Recent historians have highlighted the importance of the web of illicit commercial transactions which connected competing imperial networks to create an integrated Atlantic economy but have
Hostile Territory: High-Tension Religion and the Jewish Peddler
Scholars have long explored the role that reputation plays in the facilitation of exchange. Some attention has also been paid to the way in which religions serve as a proxy for reputation or as a
When Civil Society Uses an Iron Fist: The Roles of Private Associations in Rulemaking and Adjudication
Alexis de Tocqueville and Robert Putnam are but two of the many admirers of the countless private associations that lie at the core of civil society. This article seeks to advance understanding of
The Politics of Order in Informal Markets: Evidence from Lagos
Property rights are important for economic exchange, but in many parts of the world, they are not publicly guaranteed. Private market associations can fill this gap by providing an institutional
The Outsider’s Advantage: Distrust as a Deterrent to Exploitation1
Trust creates vulnerability to exploitation. This article approaches this paradox by comparing the exploitability of categorical trust within social groups to the deterrent effect of categorical
A Hollow Cultural Core? An Inquiry into New Institutional Approaches to Incentive Based Regulation
Abstract The trans-disciplinary New Institutional framework identifies the importance of incentive structures in preventing opportunism in market making. In recent decades this theoretical tradition
The Complementarity Between Community and Government in Enforcing Norms and Contracts, and Their Interaction with Religion and Corruption
We investigate the complementarity between informal communities and formal government enforcement of norms of reciprocation and exchange. We introduce a model in which people exchange informally
The Decline and Rise of Institutions: A Modern Survey of the Austrian Contribution to the Economic Analysis of Institutions
Institutions are the formal or informal 'rules of the game' that facilitate economic, social, and political interactions. These include such things as legal rules, property rights, constitutions,
The Jewish Diasporascape in the Straits : An Ethnographic Study of Jewish Businesses Across Borders
FSW The Straits is the waterway region that divides Indonesia, Singapore and Malaysia, with adjacent port cities like the Straits Settlements, Penang, Melaka and Singapore and on the Indonesian side,
...
...

References

SHOWING 1-10 OF 113 REFERENCES
Trade Without Law: Private-Order Institutions in Mexican California
Trade prospered in absence of law in California during the 1830s and 1840s. Merchants, through intermerchant trade and the partnerships they organized to buy goods abroad, played a central role in
Opting out of the Legal System: Extralegal Contractual Relations in the Diamond Industry
BUSINESS disputes arise in all industries, and the diamond industry is no exception. Unlike the situation in many other industries, however, diamond industry disputes are resolved not through the
Private Commercial Law in the Cotton Industry: Creating Cooperation Through Rules, Norms, and Institutions
The cotton industry has almost entirely opted out of the public legal system, replacing it with one of the oldest and most complex systems of private commercial law. Most contracts for the purchase
Reputation and Coalitions in Medieval Trade: Evidence on the Maghribi Traders
This article examines the economic institution utilized during the eleventh century to facilitate complex trade characterized by asymmetric information and limited legal contract enforceability. The
Merchant Law in a Merchant Court: Rethinking the Code's Search for Immanent Business Norms
In the spirit of the Code and Karl Llewellyn, this Article begins by looking at merchant practice. It presents a case study of the private legal system created by the National Grain and Feed
Contract Enforceability and Economic Institutions in Early Trade: the Maghribi Traders' Coalition
This paper presents an economic institution which enabled eleventh-century traders to benefit from employing overseas agents despite the commitment problem inherent in these relations. Agency
The role of institutions in the revival of trade: the law merchant
A good reputation can be an effective bond for honest behavior in a community of traders if members of the community know how others have behaved in the past – even if any particular pair of traders
Firms, Courts, and Reputation Mechanisms: Towards a Positive Theory of Private Ordering
This paper formulates a positive model that predicts when parties will employ private ordering to enforce their agreements. The typical enforcement mechanism associated with private ordering is the
Sect, Subsidy and Sacrifice: An Economist's View of Ultra-Orthodox Jews
The Israeli Ultra-Orthodox population doubles each seventeen years. With 60 % of prime aged males attending Yeshiva rather than working, that community is rapidly outgrowing its resources. Why do
Making Democracy Work: Civic Traditions in Modern Italy.
Why do some democratic governments succeed and others fail? In a book that has received attention from policymakers and civic activists in America and around the world, Robert Putnam and his
...
...