Working Paper: NBER ID: w13930
Authors: Gary Richardson
Abstract: In medieval Europe, manufacturers sold durable goods to anonymous consumers in distant markets, this essay argues, by making products with conspicuous characteristics. Examples of these unique, observable traits included cloth of distinctive colors, fabric with unmistakable weaves, and pewter that resonated at a particular pitch. These attributes identified merchandise because consumers could observe them readily, but counterfeiters could copy them only at great cost, if at all. Conspicuous characteristics fulfilled many of the functions that patents, trademarks, and brand names do today. The words that referred to products with conspicuous characteristics served as brand names in the Middle Ages. Data drawn from an array of industries corroborates this conjecture. The abundance of evidence suggests that conspicuous characteristics played a key role in the expansion of manufacturing before the Industrial Revolution.
Keywords: brand names; industrial revolution; medieval markets; adverse selection; counterfeiting
JEL Codes: L15; L2; N13; N4; N6; O14; O34; O5
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| conspicuous characteristics (Z13) | reduced adverse selection (D82) |
| conspicuous characteristics (Z13) | reduced counterfeiting (L15) |
| conspicuous characteristics (Z13) | increased consumer trust (D18) |
| conspicuous characteristics (Z13) | increased willingness to purchase (D12) |
| conspicuous characteristics (Z13) | enhanced market exchanges (D40) |
| conspicuous characteristics (Z13) | communicated quality and reputation (L15) |
| conspicuous characteristics (Z13) | alleviated consumer fears about hidden defects (D18) |