21 - Social Networks, Associations and Trade

Summary

Studies of trade are predicated on the antithesis between ‘personalised exchange’ (the Network) and ‘arms-length exchange’ (the anonymous Market). As regards ancient trade, the putative incongruity between the two has informed the view of the supremacy of personalised exchange, and the concomitant absence of market exchange. In historical analyses, furthermore, trade networks are appraised solely for their role in the distribution of raw materials and commodities. This chapter challenges these views. Focusing on a formalised kind of network, the association, it first charts the diffusion of traders’ associations to, and their integration in the economic life of, eastern Mediterranean commercial centres. Then, it investigates the mechanisms that enabled associational networks to act as fighters of trade constraints, distance-shortening entities, bridge builders between state/fiscal concerns and private profit, co-determinants of routes and prices, and as producers of knowledge and trust. Formalised networks, it is concluded, helped trade to break out of its lone-peddler mode and to amalgamate with a wider organisational world, whose newly fashioned business behaviour approximated that of the firm. In all this, this chapter is in alignment with the more recent trend among social scientists to consider networks as integral parts of market models of the economy.