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7 - Knowledge Commons, Social Infrastructures, and Informal Markets

The Case of Informal Trade Credit in India

Published online by Cambridge University Press:  09 December 2021

By
Yugank Goyal
Edited by
Erwin Dekker  and
Pavel Kuchař
Erwin Dekker
Affiliation:
Mercatus Center, George Mason University, Virginia
Pavel Kuchař
Affiliation:
King's College London
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Summary

The paper examines centuries old informal footwear cluster in India, and describes the instrument of informal trade credit, ingeniously designed and sustained by the market participants. A peculiar feature of this instrument is the shared knowledge of the creditworthiness of the traders. This knowledge is produced and consumed by the market participants as a useful resource in estimating discount on the credit. Using Ostrom’s IAD framework (its modified version) the paper attempts to understand the governance of knowledge commons in the market. In order to do so, it identifies the socio-cultural infrastructure which enables such governance. In helping identify the theoretical link between informal markets and knowledge commons through this case, the paper advances a promising step for future research not only in knowledge commons structures, but also in informal markets around the world.

Keywords

FootwearCreditInformal tradeKnowledge CommonsParchi
Type
Chapter
Information
Governing Markets as Knowledge Commons , pp. 176 - 194
Publisher: Cambridge University Press
Print publication year: 2021

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