Political fragmentation, competition, and investment decisions: the medieval grinding industry in Ponthieu, France, 1150-1250
Karine van der Beek
This article explores the effects of political structure on rulers' monopolistic gains and investment decisions in context medieval milling industry northern France, 1150–1250. Using Salop's spatial model, this aims to show that fragmentation increased watermill construction because it reduced capacity rulers limit competition from neighbouring mills. The calculations demonstrate significantly income watermills more than 50 per cent these mills cannot be economically ‘justified’ unless profit maximization over joint production is considered, revenues additional labour allocated wheat included.
The Economic History Review