THE ECONOMICS OF THE COUNTER-REFORMATION: INCUMBENT-FIRM REACTION TO MARKET ENTRY

From: Economic Inquiry | Date: October 1, 2004| Author: Hebert, Robert F; Tollison, Robert D; Ekelund, Robert B Jr | Copyright information

The Catholic Church reacted to the Protestant Reformation by taking on the defensive posture of an incumbent-firm monopoly fighting to survive in the face of new competition. Contemporary firms typically respond to rival entry by rewriting their corporate charter. So did the medieval Catholic Church. But the Council of Trent failed as a reorganization plan because to keep economic rents flowing as before, it left intact the distribution of powers and property rights among the governing body o...

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