June 12, 1997 <p> Existing works on the economic implications of social structures examined the effect of intra-community information and contract enforcement institutions on personal exchange among that community's members. In contrast, this paper examines the extent to which common knowledge...</p>

Over the last millennium, the clan and the city have been the locus of cooperation in China and Europe respectively. This paper examines - analytically, historically,and empirically - the cultural, social, and institutional co-evolution that led to this bifurcation. We highlight that groups with...