-Paradox of shopping here is surrounding oneself with superior communication links. -Exploit information imbalances in the end. -2 main. The Bazaar Economy: Information and Search in Peasant Marketing. Clifford Geertz. American Economic Review, , vol. 68, issue 2, Geertz, Clifford, “The Bazaar Economy: Information and Search in Peasant Marketing,” American Economic Review, American Economic Association, vol.

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Since thereis no separationbetween wholesalingand retailingin the bazaar, the majorityoftransactions are not betweenretailersand consumers,but betweenmiddle- men. All examplesof thisformof businessexpansionin Kalakkadu are concentratedin the tradein standardisedcommodities,such as textilesand provisions. Whilerandomvariations areinevitable, itmust limittheuncertainty aboutqualityand quantity so as to eliminate thesuspicionof systematic interference bythesellerandto maintain thebuyer’sconfidence thatprice differences reflect qualityand quantity differences.

Bazaar transactions geerttz which goods are soldlooselyrequirea technologyofweighingandmeasuring, i. Log In Sign Up.

But thisis irrelevant to bazaxr operationof theprice system, whichisnotconcerned withthephysical properties ofthegoodsinvolvedbut withtheactors’beliefsaboutthemandtheirdecisionsbasedon these. In such economies most transactions involvegoods,which are branded,prepackaged,processed,sealed or otherwisehighly standardised and substitutable. Tradersin standardised, substitutablecommodities can therefore canvassa much largernumberof offers at littlecostand limitedrisk. Tradersare geerrz to balance the advantagesof increasingprofitsthroughmore investmentfinancedby cheap loans, withthe need forsecrecynecessaryto protecttheirbusinessesinterests.

Unscrupuloustradeis thennot a functionof the actor’sethicbut of the rationality of the market Becker ; Akerlof RePEc uses bibliographic data supplied by the respective publishers.

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The Bazaar Economy: Information and Search in Peasant Marketing

Unlike industrial economies, information less improves efficiency or product quality then by securing for their possessor an advantaged place in an enormously complicated, poorly articulated, and extremely noisy communication network. Being men of intelligence and characterthey built a ‘nation of shopkeepers’ and often advocated a policy of a ‘just price’. We have no references for this item. Marketsin used capitalgoods in industrialeconomies can containconsiderableuncer- taintyand risk.

But thissupposedly uniformcategoryof economic phenomena in the Third World also includes the so-called ‘show window bazaar’ in the Frenchcolonial quarterof Sefrou: See general information about how to correct material in RePEc.

In thebazaartransaction, on theotherhand,wherethebuyer hasonlyverylimitedopportunities bbazaar ascertainqualityandquantity priortopurchase, itis thesellerwho is accusedofdishonesty.

As faras possible labouris therefore recruited alongkinshiplines,whichcan to someextentserveto overcomesomeofthestructural bazaar business expansion whichareinherent in thebazaareconomy.

In its concretefonn,it can be hidden or passed on in the privacy of an under-the-countertransaction.

But Geertzrelates theseorganisational changesto Muslimreformism, a non-conformist andindividualistic ethoswhich convertsthis-worldly profitinto other-worldly credit: Only withinthelastfewyears,a numberof textileand fertiliser shopshave begun to use advertising techniquesto make theirbusinessesbetterknown withinthe ruralhinterlandof Kalakkadu.

Pricedispersion There is a fundamentaldifferencebetween the structureof marketsin unbranded, ungradedand loosely sold commodities,and those in bazaad pre- packaged commodities. Were bazaar tradersto provide documentationof theirbusiness- dealings,thiswould oftenonly furnishevidence of tax evasion,black marketdealingsand otherillegalactivities.

But thereis a buyer and a seller in every transactionin thebazaar,andbyvirtueofoccupyingtheseroles,theformerisstructurally positionedto operateunderconditionsof greateruncertainty thanthelatter. Compared to money, they are of relativelydubious quality,of indeterminate quantityand thereforeof uncertainvalue.


The Bazaar Economy: Information and Search in Peasant Marketing

These are expensivebecause of the high risk involved forlenders. FANSELOW One ofthereasonswhythebazaarseemssuchan exoticeconomicphenomenon is thatdue bazaarr thewayitis usuallydefined, it embraces everything fromprostitutes to pharmacists Geertz Theyarealwayspreparedto offer advice on suchsubjects aswhichrubbersandalsarethesoftest, orwhichbatteries lastlongest. Standards ofvalueandunitsofmeasurein theFond-des-Negres market place,Haiti.

Perfectcompetition,in contrast,can only occur in marketsin which sellers offerhomogeneous,undifferentiated productsso thattheonlyvariabletheycan control, and in termsof which they compete, is price.

The former basaar physically highlyheterogeneous andunstandardised kindsofcommodities inwhichthereis consequently a highdegree ofuncertainty forthebuyerin whatprecisely he buys,becauseno goodis exactly like anyothergood he canbuyfromthesameor a different selleror mighthavebought in thepast.

It seems thereforemore than coincidence that all Geertz’s examples of firm-type Muslimsin Modjokuto deal in homogeneous,standardised businessesrunby reformist and substitutablecommodities.

By contrast, thelatter involveshighly standardised andthereforeeconomi- kindsofcommodities, callysubstitutable geertz priorto purchasethroughdirectcomparison, precedentor consultation withother buyers.

Comparedto the bazaar,disloyalty and larcenyby employeesare relatively easily detectable andquantifiable. These examplesall contrast ‘natural’withindustrially producedcommodities, butthisdistinction is differentfromtheone emphasised here, whichis thatbetweensubstitutable andnon-substitutable commodities.

Sharedmarketintelligence amongbuyersrevolvesaroundtheadvantages anddisadvantages ofspecificbrandsfor whichsellersarenotheldresponsible. Similarprinciplesapplyto marketsin real estate and labour Stiglitz; Rees Three typesofshopsexistwhich in thekinds of goods concerned,capitalization,and size could well be combined into one: