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Manufacturing in Classical Athens

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Manufacturing in Classical Athens MANUFACTURING IN CLASSICAL ATHENS Peter Hampden Acton Submitted in total fulfilment of the requirements of the degree of Doctor of Philosophy October 2010 School of Historical Studies The University of Melbourne ABSTRACT This thesis aims to show that applying contemporary economic frameworks and analyses to manufacturing in classical Athens can reveal important insights into Athenian society. This approach defies recent orthodoxy which argues that the economy was so “embedded” in ancient society that current economic concepts and, in particular, the assumption of profit- maximising behaviour cannot be applied. The thesis includes an assessment of the logic and relevance of this view. The principal module of analysis concerns industry structure; the theory of competitive advantage is found to explain the known size of enterprises across a range of industries and to identify four Types of manufacturing business that differed in the demands they made on participants and in the rewards they offered. Demographic analysis shows how different social groups participated in different industry Types to meet their specific objectives. The widespread availability of semi-casual income-earning opportunities for citizens of modest means revealed by this analysis must have been an important enabler of the Athenian lifestyle and participatory democracy. Three other analyses support the general proposition that there is value in applying economic analyses. They address the following questions: How and why did industries emerge from the oikos? (Supply and Demand Theory). How did Athenians think about industry as an investment opportunity? (Risk-Return Analysis). Why did Athens not have an Industrial Revolution? (Combining previous findings). In each case, the thesis identifies new perspectives on ancient society and behaviour that are revealed by the microeconomic analysis. The conclusions also cast into serious doubt arguments by recent scholars that ancient behaviour in the economic sphere was not economically rational or geared to profit-maximisation. They show that Athenians largely acted in a commercially rational way but with important exceptions revealed by the analysis. The thesis concludes by suggesting other applications of this approach to historiography. iii DECLARATION This is to certify that: i) The thesis comprises only my original work towards the Ph. D ii) Due acknowledgement has been made in the text and in the Acknowledgements to all other material used iii) The thesis is less than 100,000 words in length. Peter Acton September 2010 v ACKNOWLEDGEMENTS For giving me a lifelong enthusiasm for the classics: Michael Feeney, Dom. Denis Agius, Kevin Newman, Michael Winterbotham, David Mitchell, Martin Frederiksen, John Davies and George Forrest. For pioneering work in the theory of competitive advantage: Bruce Henderson and his colleagues in the early years of The Boston Consulting Group; my mentors, and subsequently my partners, in Australia: George Pappas, Colin Carter, Ralph Evans and Maurie Koop. For particular help with this thesis: my supervisors, Chris Mackie and K.O. Chong-Gossard; Edward Harris; Al Moreno; Anthony Snodgrass. For technical advice on production technology: Mary Acton, Milton Abbas, Dorset, England. Porcelain restorer; Kevin Beasley, Melbourne, Victoria. Pattern maker; Rodney Broad, Meridian Sculpture Founders Pty Ltd., Melbourne. Foundry Manager; Ian Gregory, Anstey, Dorset. Potter; John Hearn, Professor of Mathematics and Geospatial Sciences, RMIT University, Melbourne; Chris Kane, Dandenong, Victoria. Clay Wholesaler; Jennifer Mann, Woodend, Victoria. Sculptor; Craig Sitch, Manning Imperial, Redan, Victoria. Manufacturer of ancient artefacts. For help perfecting the graphics, Linda Menzies. vii TABLE OF CONTENTS ABSTRACT ............................................................................................................................. iii DECLARATION ....................................................................................................................... v ACKNOWLEDGEMENTS .....................................................................................................vii 1. INTRODUCTION ............................................................................................................... 1 Primary Sources ............................................................................................................. 1 Literature ................................................................................................................. 1 Archaeological and Epigraphical Evidence ............................................................ 8 Modern Perspectives .................................................................................................... 10 Methodology ................................................................................................................ 17 2. THE EMBEDDEDNESS PARADIGM AND THIS THESIS .......................................... 21 The Embeddedness Paradigm ...................................................................................... 21 A False Dichotomy ...................................................................................................... 29 This Thesis and the Embeddedness Paradigm ............................................................. 35 Who Can Engage in What Transactions? ............................................................. 36 What Language is Used to Describe Economic Activity? .................................... 40 Was Profit Making Through Industry Socially Acceptable? ................................ 45 Was Profit Maximisation a Conscious Goal? ....................................................... 52 The Rationality of Economic Behaviour...................................................................... 55 3. THEORIES OF FIRM SIZE ............................................................................................. 57 Traditional Reasons for the Observed Scale of Athenian Enterprises ......................... 58 Access to Credit .................................................................................................... 58 Delegation ............................................................................................................. 60 Accounting Practices ............................................................................................. 61 Specialisation of Labour and the Lack of Machinery ........................................... 64 Modern Theory of Industry Structure .......................................................................... 68 Competitive Advantage as the Basis for Business Success .................................. 68 Variations in the Extent of Advantage Achievable ............................................... 74 Predictions for Industry Structure ......................................................................... 75 4. THE POTTERY INDUSTRY ........................................................................................... 81 Pottery in Ancient Greece ............................................................................................ 81 ix The Manufacturing Process and Deployment of Labour ............................................. 90 Fine Ware .............................................................................................................. 92 Coarse Ware: Kiln Capacity and Labour Requirements ....................................... 93 The Potential for Profitable Growth in Coarse Ware ................................................... 99 The Competitive Dynamics of the Pottery Industry ............................................. 99 The Potential for Profitable Growth ................................................................... 102 Changes in the Industry ...................................................................................... 106 5. OTHER INDUSTRIES ................................................................................................... 109 Shield Manufacture .................................................................................................... 110 Metalworking ............................................................................................................. 115 Textiles ....................................................................................................................... 125 Luxury Furniture ........................................................................................................ 132 Tanning ...................................................................................................................... 133 Shoemaking ................................................................................................................ 135 Food Processing ......................................................................................................... 138 Cosmetics and Perfumes ............................................................................................ 140 Conclusion ................................................................................................................. 143 6. INDUSTRIAL ATHENS ................................................................................................ 151 Participation in Manufacturing .................................................................................. 151 The Investor Class: Rich Citizens ....................................................................... 154 Other Citizens
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