Article
Abstracts
Mark R. Wilson
Gentlemanly Price-Fixing and
Its Limits: Collusion and Competition in the U.S. Explosives
Industry during the Civil War Era
During the Civil War era, when the U.S. explosives
industry was already dominated by a handful of firms,
the leading manufacturers of black powder tried repeatedlywith
mixed successto fix prices in commercial and
military markets. Their surviving correspondence reveals
some of the dynamics of oligopolistic collusion and
competition. In commercial markets, price-fixing by
leading explosives makers was undermined not only by
competition from small powder manufacturers but also
by rivalry among their own selling agents. The same
agency problems that made price-fixing more difficult,
however, may have actually made it easier for manufacturers
to sustain the social foundations of cooperation by
allowing them to blame the failures of their agreements
on forces outside their control. Maintaining cooperative
relations over the long run proved useful to manufacturers
in wartime military markets, in which price agreements
were easier to sustain. But during the Civil War, the
leading powder producers found that even successful
collusion in the military supply business did not guarantee
high profits, because government bureaus could prove
to be demanding consumers. (Pages 207234)
Timothy W. Guinnane
A "Friend and Advisor": External
Auditing and Confidence in Germany's Credit Cooperatives,
18891914
An economic enterprise faces two, related, problems:
effectively managing its activities and communicating
to outsiders that it is, in fact, well run. The credit
cooperative movement that grew up in Germany in the
second half of the nineteenth century had to wrestle
with both. These cooperatives thrived, in part, because
they adopted strategies first to obtain and then to
harness the information they needed about the communities
in which they were located, giving them an advantage
over other lenders. Particularly effective was the
tactic of using local people as managers, which helped
to cement their ties with the community. Yet because
few, if any, locals had banking experience and most
were not even familiar with basic accounting methods,
the managers created internal management problems,
intensifying outside suspicion of the cooperatives
as banking enterprises. The methods the cooperatives
developed to overcome these problems drew on a combination
of local initiative and regional assistance that was
typical of the movement as a whole. The movement's
ability to train its own talent suggests that it had
a broader impact than has been captured by statistics
on its membership or financial assets. (Pages 235-264)
Evan Roberts
"Don't Sell Things, Sell Effects":
Overseas Influences in New Zealand Department Stores,
1909-1956
In the years before World War II, New Zealand department
stores became increasingly influenced by American ideas
about salesmanship. This involved a shift away from
British precepts about retailing, which discouraged
initiative by salespeople and emphasized service. Stores
that adopted American ideas were trying to become more
competitive and began to appeal to working- and middle-class
consumers. They imported the concept of "suggestion
selling" and the idea of pushing complementary goods.
New Zealand merchants modified American methods by
relying on the use of manuals and bulletins to train
salespeople and, unlike American stores, did not introduce
commission payment schemes. (Pages 265-290)
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