Principle-agent problems in the French slave trade: the case of Rochelais Armateurs and their agents, 1763-1792

Albane Forestier

Economic History Working Papers from London School of Economics and Political Science, Department of Economic History

Abstract: La Rochelle, the fourth largest slaving port in France in the eighteenth-century, is used as a case study in the application of agency theory to long-distance trade. This analysis explores an area not accounted for in the literature on French commercial practices. Being broadly couched in a New Institutionalist framework, this study explores the formal and informal institutions designed to curb agency problems, and emphasizes the ex-post strategies such as social rewarding, to which little attention is usually paid. It also finds reputation-effect strategies were efficiently combined with a well-operating legal system. It subsequently challenges the traditional dichotomy between societies where personal links dominated the economy and modern societies where business links are predominantly impersonal. As a result, this empirical analysis leads to a reappraisal of private ordering as opposed to legal centralism and calls for more theoretical research.

JEL-codes: B1 J01 N0 O52 R14 (search for similar items in EconPapers)
Pages: 53 pages
Date: 2005-04
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Citations: View citations in EconPapers (1)

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