Institutions and Organizations

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(No Transcript)
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Mwali bracelets
Soulava necklaces
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Emergence of an Exchange Network The Kula-Ring

• Inter-island exchange between previously hostile
  groups
• No central authority or enforcing agent
• Stable rules prescribing which island visits
  which other island

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The Kula Ring
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Emergence of the Kula-Ring Rationalist
Explanation

• actors minimize transaction costs
• exchange with nearest neighbors leads to the
  formation of proto-coalitions
• exchange between proto-coalitions produces
  ring-like structure
• ring-like structure most efficient

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Emergence of the Kula-Ring Culturalist
Explanation

• Identities
• Identity of membership in Kula Ring community
  established by participation of outsiders in
  rituals and ceremonies
• Signaling
• Participation in rites signals reliability and
  trustworthiness and facilitates screening out
  outsiders who might wish to benefit from joining
  the club by passing/faking as insiders

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Emergence of the Kula-Ring Structuralist
Explanation

• Disadvantages of ring-like structure
• Advantages of network closure
• advisory trust
• third party monitoring
• safety valve for exchange