Abstract: I study the capacity of business associations - private, formal, noncommercial organizations designed to promote the common business interests of their members - to support contract enforcement and collective action. Inspired by recent empirical literature, my theoretical framework connects the organizational and institutional features of formal and informal business organization with socioeconomic distance. I show how associations provide value to their members even if members are already embedded in social networks, and which players join an association. I propose explanations for empirical puzzles, put forward novel testable hypotheses, and relate business associations to alternative private ordering institutions.
Bio: After studying Economics and Chinese Studies in Tübingen (Germany) and Singapore, Jens Prüfer received a PhD in economics from Goethe University Frankfurt in 2005. Since 2006 he has been a faculty member of Tilburg University, first in the Economics Department and, since recently, in the Department of Organization & Strategy. His research focuses on institutional economics, organizational economics, law & economics, and industrial organization. Studying the economics and competitive conduct of non-firm organizations such as clubs, nonprofits, associations, networks, cooperatives, and public entities is at the core of his research interest.