Institutions in Informal Markets

The central inquiry of this work aims at understanding how informal markets function outside the formal contract and property rights framework, and in doing so, what kinds of institutions do these markets develop. I attempt to answer these questions through case studies of three markets in India, namely, footwear cluster in Agra, coal-mines mafia in Dhanbad, and sex work (prostitution) in New Delhi. Locating the study of informal markets and institutions in broad literature of law and development, the thesis advances policy suggestions that would be useful in a general context of unregulated markets in developing countries.

At a general level, the thesis explores the importance of understanding local institutions and not universal policies. If law is an effective tool for development, then it has to adequately appreciate the heterogeneous institutions located within the market frameworks