Relationship-based contract enforcement is commonly thought to limit market expansion. In contrast, this paper illustrates how relationship-based contract governance accommodates new entrants into market exchange using a case study of the cycle-rickshaw rental market in a city in central India....

A large theoretical and empirical literature suggests that the salience of network-based ties in contract enforcement under relation-based governance systems limits market expansion. This paper illustrates the incorporation of new agents into market exchange under conditions of informal contract...