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Toward an economic theory of customary measurement

Published online by Cambridge University Press:  22 June 2023

Glen Whitman
Glen Whitman*
Affiliation:
Department of Economics, California State University, Northridge, California, USA
*
Corresponding author. E-mail: glen.whitman@gmail.com
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Abstract

The article proposes an economic theory of customary measurement systems. The form of such systems is driven by two transaction-cost factors: minimising costs of implementation, and coordinating on shared standards. These factors combine to yield seven principles of customary measurement, supported with illustrative examples from the traditional Anglo-American, Egyptian, Greek, Roman, Chinese, and Indian measurement systems. The theory illuminates various confounding features of such systems, including ubiquitous binary patterns, frequent appearance of duodecimal ratios, and persistence of trade-specific measures.

Keywords

binarycoordination gamesmeasurementtransaction costs

Information

Type
Research Article
Information
Journal of Institutional Economics , Volume 19 , Issue 6 , December 2023 , pp. 709 - 728
Copyright
Copyright © The Author(s), 2023. Published by Cambridge University Press on behalf of Millennium Economics Ltd.

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