Saturday, March 5, 2011

Protestant Reformation and the Printing Press

New evidence provided by Jared Rubin is available here.

My comment: The printing press increased in considerable proportions the amount of information available to the population in the West. According to my thesis, this contributed to the development of decentralized production and a decline of hierarchical production.

A main difference between the Protestant churches and the Catholic dominant one, at the time, was that the  former were decentralized enterprises in the production of religious services while the latter was heavily centralized under the papal management in Rome.

The information revolution produced by the printing press thus determined a rise of the decentralized sector of the religious business, and a contraction of the market share and production of the centralized sector of the same business. This is what I defined as the “Coase-Rybcinski” theorem in my 2000-2006 book. 

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