-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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The features associated typically withthebazaarbyitsethnographers areonly foundin thelattertypeof market. One consequence of his attemptto presenta view of bazar bazaar economy as the actors themselvessee it-‘a qualitativeformulationof the information situationin the suq as the Moroccans themselvesconceive it’ Information search is thus the really advanced art in the bazaar.

In termsof thepurelyphysical properties of products, theirdifferentiation mightbe whollyillusoryand achieved throughpersuasive advertising.

Bazaar tradersare unwillingand oftenunable to providethese. Itmovescompetition fromtherelationship betweenbuyer andsellerto therelationship betweensellers, becausebuyersare consistently able to identifytheprovenance andqualityofa goodandtherefore toexercise choicebetween different products. He was the first toinstala telephoneline,he employed an accountant, andsenthistwoeldestsons to studycommercein theDistrict headquarters.

Striking a bargaininJavanese markets. Sincehissonswereawayhe relied exclusively on employees. The primary competitive relationshipis that ofthesellerversusthebuyer. Theyaretherefore ableto comparenotonlythequalityofdifferent brands, butalso to evaluatetheirqualityin relationto theirprice,an operationwhichis extremely yeertz thebazaar. In sucha marketthestrategy of individualinspectionor intensiveinformation searchis replacedby thatof price canvassing or extensive information search Rees ;Geertz This enablesthemto extend greatly theirsearchforbetter wholesaleoffersandto seekto establish as closerelation- shipsas possiblewithproducersand theiragents,thuscuttingout the chain of middlemen.


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 geeetz an enormously complicated, poorly articulated, and extremely noisy communication network. In thiswayhe keepshisown as well as theirpricesandprofit marginshigh,insteadof passingon hischeaperpurchasing pricesto hiscustomers and thereby increasinghis sharein themarketat theexpenseof othersellers.

These are expensivebecause of the high risk involved forlenders. A completeseparationof managementand ownershipagain occursonly in the stand- ardisedcommoditytrade.

TheKalakkadu bazaar In thefollowing I shalltryto applythisanalytical framework to explainsomeofthe complexity ofthebazaarin Kalakkadu, a smallcommercial townin thesouthIndian stateofTamilNadu. Help Center Find new research papers in: In reality,such materialsare heterogeneous;thereare variationsin qualitythatopen the door formanipulativepracticesaimed at disguising thesevariationsfromthe sellerwhilstexploitingdifferences in buyingprice.

The Bazaar Economy: Information and Search in Peasant Marketing

The reasonwhy the role distinctionbetween buyerand selleris not partof the economic discourseof the bazaar seems to lie in the empiricallyhigh incidence of the combinationof the roles of buyer and seller in the same person, namelythemiddleman.

There thereforeexistsin the bazaar transactionan informationasymmetry betweentheseller,who passeson somethinguncertainin returnforsomethingcertain, and thebuyer,who does thereverse. The sellersthus divestthemselvesof the high risk of having to finance their customers’demand. Three typesofshopsexistwhich in thekinds of goods concerned,capitalization,and size could well be combined into one: If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item.


Mines, and Drs C. With theexceptionofcounterfeits’, itis a commoditywhose value is perfectly certain. In marketsforheterogeneous,non-substitutable goods and services,in whichstand- ardsarerelatively gazaar and uncertain,and consequentlyin whichscrupulousness is not rewardedand unscrupulousness not punished,bazaar tradeis economicallythe morerationalstrategy, indeeditbecomesa preconditionforcontinuationin themarket.

While emphasisingthislackofbusiness specialisation,Fox also describesoverspecialisation of businessesas anotherpeculiarity of the bazaar: In markets forperishableproducts, commodities areusuallydisplayed andrelatively easilyinspectable andoftensoldpiecemeal, therebycounteracting quality andquantity uncertainty.

Geertz – Bazaar Economy

The ability to operate effectively in the gap of ignorance between a price obviously too high and one obviously too low is what makes a good market-trader: The price mechanismdoes not operate in relationto raw materialsas such,but in relationto materialsartificiallystandardised in termsof an imposedsystemof classification.

A bazaartrader whomanagestopurchase hissupplies cheaperthanhisfellowtraders usually continues to sellatthesamepriceas theydo andarranges to supplythemat a reducedprice. You can help adding them by using this form. Post navigation Previous Previous.

Of course thebazaar traderin turndoes preciselythe same in his role as buyer. Sellersseek not only to adjustqualityand quantity,but also price.

Theyarealwayspreparedto offer advice on suchsubjects aswhichrubbersandalsarethesoftest, orwhichbatteries lastlongest. Differences in quality andquantity aretherefore linkedtopricevariations. Only withinthelastfewyears,a numberof textileand fertiliser shopshave begun to use advertising techniquesto make theirbusinessesbetterknown withinthe ruralhinterlandof Kalakkadu.