The New Institutional Economics of Markets

Edited by Eink G. Furubotn

Honorary Professor of Economics and Co-Director, Centerfor New Institutional Economics University of Saarland, Germany and Research Fellow, Private Enterprise Research Center, Texas A&M University, USA and

Rudolf Richter

Professor Emeritus of Economics and Director, Center for New Institutional Economics, University of Saarland, Germany

THE INTERNATIONAL LIBRARY OF CRITICAL WRITINGS IN ECONOMICS

An Elgar Research Collection Cheltenham, UK • Northampton, MA, USA Contents

Acknowledgements Introduction Eirik G. Furubotn and Rudolf Richter

PART I PRECONTRACTUAL ACTIVITIES: SEARCH AND INSPECTION 1. James M. Acheson (1985), 'The Maine Lobster Market: Between Market and Hierarchy', Journal ofLaw, Economics and Organization, 1 (2), Autumn, 385-98 2. Yoram Barzel (1982), 'Measurement Cost and the Organization of Markets', Journal of Law and Economics, XXV (1), April, 27-48 3. Roy W. Kenney and Benjamin Klein (1983), 'The Economics of Block Booking', Journal of Law and Economics, XXVI (3), October, 497-540 4. Phillip Nelson (1974), 'Advertising as Information', Journal of Political Economy, 82 (4), July-August, 729-54 5. Joel M. Podolny (1993), 'A Status-based Model of Market Competition', American Journal of Sociology, 98 (4), January, 829-72 6. Walter W. Powell (1990), 'Neither Market Nor Hierarchy: Network Forms of Organization', Research in Organizational Behavior, 12, 295-336

PART II CONTRACTING: PRICE AND CONTRACT FORMATION 7. Dennis W. Carlton (1986), 'The Rigidity of Prices', American Economic Review, 76 (4), September, 637-58 8. Harold Demsetz (1969), 'Information and Efficiency: Another Viewpoint', Journal of Law and Economics, XII (1), April, 1-22 9. Armen A. Alchian and Susan Woodward (1987), 'Reflections on the Theory of the Finn', Journal of Institutional and Theoretical Economics, 143(1), 110-36 10. Armen A. Alchian (1965), 'Some Economics of Property Rights', // Politico, 30,816-29 11. Ian R. Macneil (1978), 'Contracts: Adjustment of Long-Term Economic Relations Under Classical, Neoclassical, and Relational Contract Law', Northwestern University Law Review, 72 (6), November-December, 854-905 12. Vernon L. Smith (1962), 'An Experimental Study of Competitive Market Behavior', Journal of Political Economy, LXX (2), April, 111-37 vi The New Institutional Economics of Markets

13. Oliver E. Williamson (1979), 'Transaction-Cost Economics: The Governance of Contractual Relations', Journal ofLaw and Economics, XXII (2), October, 233-61 361

PART III POSTCONTRACTUAL ACTIVITIES: EXECUTION, CONTROL AND ENFORCEMENT 14. David P. Baron (2002), 'Private Ordering on the Internet: The eBay Community of Traders', Business and Politics, 4 (3), 245-74 393 15. Peter Bernholz (1993), 'Constitutions as Governance Structures: The Political Foundations of Secure Markets: Comment', Journal ofInstitutions and Theoretical Economics, 149 (1), 312-20 423 16. Avner Greif (1993), 'Contract Enforceability and Economic Institutions in Early Trade: The Maghribi Traders' Coalition', American Economic Review, 83 (3), June, 525-48 432 17. Avner Greif, Paul Milgrom and Barry R.Weingast (1994), 'Coordination, Commitment, and Enforcement: The Case of the Merchant Guild', Journal of Political Economy, 102 (4), August, 745-76 456 18. Benjamin Klein and Keith B. Leffler (1981), 'The Role of Market Forces in Assuring Contractual Performance', Journal of Political Economy, 89 (4), August, 615-41 488 19. Anthony T. Kronman (1985), 'Contract Law and the State of Nature', Journal ofLaw, Economics and Organization, 1(1), Fall, 5-32 515 20. John McMillan and Christopher Woodruff (2000), 'Private Order Under Dysfunctional Public Order', Michigan Law Review, 98 (8), August, 2421-58 543 21. Paul R. Milgrom, Douglass C. North and Barry R. Weingast (1990), 'The Role of Institutions in the Revival of Trade: The Law Merchant, Private Judges, and the Champagne Fairs ', Economics and Politics, 2(1), March, 1-23 581 22. L.G. Telser (1980), 'A Theory of Self-enforcing Agreements', Journal of Business, 53 (1), January, 27-44 604 23. Barry R. Weingast (1993), 'Constitutions as Governance Structures: The Political Foundations of Secure Markets', Journal of Institutional and Theoretical Economics, 149 (1), 286-311 622