9-23-08_Lecture_Notes - Economics 323 (9/23/08) Reading...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
Economics 323 (9/23/08) Reading Thursday: Mancall Tuesday: Vickers/Ball/Walton PRELIM THURSDAY OCTOBER 2, 2008 Ships are very small- lots of voyages to move a significant amount of goods Stay in port a long time- time to locate an outbound-going cargo Ships make money at sea and not when they are sitting in port Costs move inversely with the load factor The more you fill it up – the cheaper per time Larger ships have lower cost per time as compared to small ships Balance load factor and ship time at port Best way to run your ship is to shuttle it back and forth between two ports (specialize) Defense of your ship - pirate infested areas - guns and people - every gun means less space and room for cargo and more provisions for people Merchants bought insurance (usually for bulk value of cargo) Diversify- owned small shares of many voyages Final cost consisted of more than 50% transaction costs Transaction costs and associated fees, which the merchant pays Over the course of the colonial era, port times decreased Also there was a reduction in piracy and thus in the requirements of arms
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 3

9-23-08_Lecture_Notes - Economics 323 (9/23/08) Reading...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online