The Development of Trading Networks among Spatially Separated Traders as a Process of Proto-coalition Formation: the Kula Trade
نویسندگان
چکیده
Our aim in this paper is to look at graph-theoretic and coalition-formation approaches to the development of exchange networks among spatially separated traders. In particular, we shall show: (1) That decentralized trading structures involving bilateral trading with left-hand and righthand neighbors in a connected ring can, for a certain specified spatial arrangement of traders, be more efficient in minimizing total transportation costs of goods than a centralized market-trading structure; and (2) That an adaptation of a model of sequential proto-coalition formation proposed by Grofman (1982) can be used to predict trade linkages among traders in the Kula ring of the Massing region of Papua New Guinea and to account for the development of the inner ring structure. We shall also briefly discuss how graph theory can be used as a tool to explicate the underlying market structure of a given network of traders.
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