The establishment of trust is a key component of economic activity and social ties can make business dealings work better. However, we do not know much about how economic actors created deliberately new social ties in order to pursue their objectives. This article analyzes the way in which merchants and entrepreneurs recurred to specific rituals to establish formal social ties, with the intent of protecting their business relationships. It focuses on relational instruments that until now had been neglected, particularly godparenthood and marriage witnessing. It shows that formalization, ritualization and publicity of ties were used by entrepreneurs to establish trust with their business associates, for example when information was asymmetric or when institutions were perceived as inefficient in guaranteeing mutual good behaviour. The analysis covers a long period, from the late Middle Ages to today. It pays particular attention to the consequences of the Reformation in sixteenth-seventeenth century and of the industrial revolution in the nineteenth. Contrary to the received wisdom, it suggests that formal social ties such as godparenthood continued to play an important role in economic activity during and after the industrial revolution. New databases about Early Modern Italy and nineteenth century France are used.

Entrepreneurs, formalization of social ties and trustbuilding in Europe (14th-20th centuries)

ALFANI, GUIDO;
2012

Abstract

The establishment of trust is a key component of economic activity and social ties can make business dealings work better. However, we do not know much about how economic actors created deliberately new social ties in order to pursue their objectives. This article analyzes the way in which merchants and entrepreneurs recurred to specific rituals to establish formal social ties, with the intent of protecting their business relationships. It focuses on relational instruments that until now had been neglected, particularly godparenthood and marriage witnessing. It shows that formalization, ritualization and publicity of ties were used by entrepreneurs to establish trust with their business associates, for example when information was asymmetric or when institutions were perceived as inefficient in guaranteeing mutual good behaviour. The analysis covers a long period, from the late Middle Ages to today. It pays particular attention to the consequences of the Reformation in sixteenth-seventeenth century and of the industrial revolution in the nineteenth. Contrary to the received wisdom, it suggests that formal social ties such as godparenthood continued to play an important role in economic activity during and after the industrial revolution. New databases about Early Modern Italy and nineteenth century France are used.
2012
Alfani, Guido; V., Gourdon
File in questo prodotto:
Non ci sono file associati a questo prodotto.

I documenti in IRIS sono protetti da copyright e tutti i diritti sono riservati, salvo diversa indicazione.

Utilizza questo identificativo per citare o creare un link a questo documento: https://hdl.handle.net/11565/3720322
 Attenzione

Attenzione! I dati visualizzati non sono stati sottoposti a validazione da parte dell'ateneo

Citazioni
  • ???jsp.display-item.citation.pmc??? ND
  • Scopus 17
  • ???jsp.display-item.citation.isi??? 18
social impact