The North American Fur Trade: Bargaining to a Joint Profit Maximum Under Incomplete Information, 1804-1821
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Authors/collaborators |
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Title |
The North American Fur Trade: Bargaining to a Joint Profit Maximum Under Incomplete Information, 1804-1821
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Abstract |
The authors examine bargaining between the Montreal-based Northwest Company and the London-based Hudson's Bay Company using models of "bargaining under incomplete information." Two previously undisturbed bodies of correspondence are analyzed: letters between the two companies and letters between the Hudson's Bay Company and its London committee. The authors explain that through merger the companies achieved a joint maximum, but the lengthy and costly bargaining process dissipated much of the potential gain through depletion of animal stocks. They argue that the achievement of a joint maximum was hindered by incomplete information, commitment to a strategy which led to bargaining breakdowns, delineation of each party's rights under law, and environmental changes.
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Publication |
The Journal of Economic History
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Volume |
Vol. 46
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Issue |
no. 4
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Pages |
967-986
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Date |
December 1986
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Language |
en
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Citation |
Carlos, Ann M., and Elizabeth Hoffman. “The North American Fur Trade: Bargaining to a Joint Profit Maximum Under Incomplete Information, 1804-1821.” The Journal of Economic History Vol. 46, no. 4 (December 1986): 967–986.
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