Cover: Stateless Commerce: The Diamond Network and the Persistence of Relational Exchange, from Harvard University PressCover: Stateless Commerce in HARDCOVER

Stateless Commerce

The Diamond Network and the Persistence of Relational Exchange

Add to Cart

Product Details

HARDCOVER

$37.00 • £29.95 • €33.50

ISBN 9780674972179

Publication Date: 06/19/2017

Text

240 pages

6-1/8 x 9-1/4 inches

11 graphs, 1 table

World

In Stateless Commerce, Barak Richman uses the colorful case study of the diamond industry to explore how ethnic trading networks operate and why they persist in the twenty-first century. How, for example, does the 47th Street diamond district in midtown Manhattan—surrounded by skyscrapers and sophisticated financial institutions—continue to thrive as an ethnic marketplace that operates like a traditional bazaar? Conventional models of economic and technological progress suggest that such primitive commercial networks would be displaced by new trading paradigms, yet in the heart of New York City the old world persists. Richman’s explanation is deceptively simple. Far from being an anachronism, 47th Street’s ethnic enclave is an adaptive response to the unique pressures of the diamond industry.

Ethnic trading networks survive because they better fulfill many functions usually performed by state institutions. While the modern world rests heavily on lawyers, courts, and state coercion, ethnic merchants regularly sell goods and services by relying solely on familiarity, trust, and community enforcement—what economists call “relational exchange.” These commercial networks insulate themselves from the outside world because the outside world cannot provide those assurances.

Extending the framework of transactional cost and organizational economics, Stateless Commerce draws on rare insider interviews to explain why personal exchange succeeds, even as most global trade succumbs to the forces of modernization, and what it reveals about the limitations of the modern state in governing the economy.

Recent News

Black lives matter. Black voices matter. A statement from HUP »

From Our Blog

Jacket: The Cabinet: George Washington and the Creation of an American Institution, by Lindsay Chervinsky, from Harvard University Press

Why You Should Participate in an (Online) Book Club

Online book clubs can be a rewarding way to connect with readers, Lindsay Chervinsky discovered, when she was invited to join one to discuss her book, The Cabinet: George Washington and the Creation of an American Institution. Since my book was published in April 2020, I’ve discovered that my work appeals to three main audiences. First, the general readers who are enthusiastic about history, attend virtual events, and tend to support local historic sites. Second, readers who are curious about our government institutions and the current political climate and are looking for answers about its origins. And third, history, social studies, and government teachers