Bridging Monopolies of Power: Foreign Tourism Trade Relations between Germany and Jordan and Constitutional Uncertainty

Sabine Dörry

No 2012-17, LISER Working Paper Series from Luxembourg Institute of Socio-Economic Research (LISER)

Abstract: International tourism trade relations often operate ‘outside’ national territorialities of law. In holiday destinations without mass tourism, tour operators usually rely on local service providers to produce the tourist package tour on-site. Because tour operators are not always able to establish effective governance mechanisms with their local service providers, loss of their business – and in the worst case bankruptcy – can cause significant economic costs. The paper discusses the efficiency of tour operators’ strategies to deal with such constitutional uncertainty and to impose ‘self-enforcement’. The extensive empirical case study at hand enriches our understanding of private ordering in the service sector and thus contributes to the conceptual discussion within the New Institutional Economics of International Transactions (NIEIT).

Keywords: International private law; transaction costs; private ordering; tourism; Jordan; Germany (search for similar items in EconPapers)
JEL-codes: F02 F15 K33 L14 (search for similar items in EconPapers)
Pages: 40 pages
Date: 2012-03
New Economics Papers: this item is included in nep-ara and nep-tur
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Persistent link: https://EconPapers.repec.org/RePEc:irs:cepswp:2012-17

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