Feudal bargain in Prague: The rise, spread, and fall of craft guilds

Abstract

Craft guilds were created as a response to certain problems associated with raising royal revenues and securing basic public services in Prague during the medieval and early modern periods. The theory consistent with historical evidence predicts that the rise, spread, and fall of guilds was a result of mutually beneficial bargaining between local craftsmen and their feudal rulers. Guilds enabled craftsmen to utilize the benefits of collusion by offering their capacities to sovereign authorities in exchange for exclusive market privileges. Nevertheless, they created social distortions within their industries in the process.

An analytical narrative of theDay of Dupes

“…3.For an early survey of the literature that uses game theory for economic history analysis, see Greif (2002). A recent contribution along these lines can be found in Dolejší (2022) where a repeated games is used to study the rise and the fall of craft guilds in the Kingdom of Bohemia. See also Benzecry and Shera (2023), who study the fall of the Templars by using a two-stage game where the Pope and King Philip IV are the two players.…”