This blog post makes an analysis of maghribi traders and mediaval trade. The audience of this article is expected to have a background information of maghribi traders and mediaval trade.
The problem of eleventh-century maghribi traders started with a bale of indigo coming from egypt. There were seven different packages where 3 of them were labeled with both the names of the owners and the agents and the rest were labeled only with the names of the agents. The bale was labeled with the name of a Maşliah, who is a jewish judge and merchant.
Since Maşliah was in a different city, another man, Hayyim, became responsible for it. They opened the package in front of witnesses and including an official. Another man came and told that two of the packages should belong to a different agent. Three different men made claims on the goods and the situation became very confusing that it was very difficult for Hayyim to handle.
Maghribi Traders in Mediaval Trade
As a result, the problem of the maghribi traders was conducting trades without reliable institutional mechanisms. The maghribi traders solved the problem by using a coalition and a multilateral reputation system. A coalition is defined as a non-anonymous institution based on a multilateral reputation mechanism. The group had a collectivist punishment system against any problems.
The Problems of Maghribi Traders
One of the most important things about trade is sustainability. So, one of the main aims of traders is to sustain and even increase the profitability of their trades. The traders want to see their job growing. The maghribi traders increased their ability to exchance and trade by using their solution. If there is a limited ability of exchange, that means the ability of effective trade and more importantly the ability of growth is limited.
By using the solution that I mentioned in the first part of this article, the traders broke the borders of their exchange and as a result they will have expanding exchange relations. This how the solution is important for the future development of their trade.