Why Whaling?

Ellickson, Robert C. 1991. Order Without Law: How Neighbors Settle Disputes. Cambridge: Harvard University Press.

At first this section really turned me off, ugh the last thing I want to read about is whaling, but after taking Professor Ryan's advice to just get over it I actually learned alot. Chapter 11: Substantive Norms: Of Bees, Cattle, and Whales is a great example of how to an archeology of a norm. Ellickson breaks down whaling norms from their social, historical, and economic reasoning and position. He also demonstrates how the norms that were in place were welfare maximizing with low transaction cost by comparing them to hypothetical alternative norms which were not welfare maximizing with low transaction costs.

Whaling Norms 191
*The whaling industry, which was plentiful and highly profitable during the 18th and 19thc. established its own welfare maximizing norms spontaneously and over time. *Rules and norms were unwritten but established an overarching system to govern the property rights of whalers. *The actions inspired by theses norms were later used in courtrooms as precedent to establish law.
“The practices of high-seas whalers in the pre steamship era powerfully illustrate how nonhierarchical groups can create welfare maximizing substantive norms” (Ellickson 191).
The Whaling Industry 192
*The whaling industry was close and tight knit community. *Many lived in villages together and related by marriage. *Even internationally whalers were still a community at sea and were prey to gossip among other whalers or their families if they behaved inappropriately at sea. *Norms existed and were upheld because they were a tight knot community.
“The international whaling community was a tight knit one” (Ellickson 193).
“…evidence available suggests that whalers’ norms of capture were internationally binding” (Ellickson 193).
Hypothetical Whaling Norms 195
*There are all sorts of norms that whalers could have used but didn’t. *A possession decides rule, whale belonging to the ship that killed it, fractional ownership, active pursuit means right to capture, belongs to ship that had first reasonable prospect. *All of these hypothetical norms fail to reduce deadweight losses while simultaneously having low transaction costs.
“…whalers recognized that they needed norms to govern the ownership of whales that one ship had helped to kill, but another ship had ultimately seized” (Ellickson, 195).
Actual Whaling Norms 196
*Whalers actual norms were less fanciful and more utilitarian than the hypothetical norms presented above. *Whalers had 3 basic norms that were both sensitive to the problem of deadweight losses and transaction costs. 1.fast fish loose fish, if the fish was fastened to a line it belonged to the boat that held the line, if it was loose from the line the whale was up for grabs. Useful in Greenland for right whales. 2. iron holds the whale rule, no line connection needed for ownership just the harpoon or lance affixed to the body of the whale. Useful in New England for sperm whales. 3. rules that split ownership, this rule split the whale carcass when 2 ships were involved, the harpooner and the ultimate seizer, according to labor expended.
	Whaling Norms and Whaling Law 203
*Whalers were, for more than a century, able to govern their industry through self created and imposed norms. *There was no need for legal intervention until the whaling community and industry simultaneously began its decline. *Even after the decline the whalers’ self-created norms were used in court cases as precedent to make judgments.
“The example of the high seas whalers illustrates, contrary to the legal centralist view, that informal social networks are capable of creating rules that establish property rights. Whalers had little use for law or litigation” (Ellickson, 203).
Were Whalers’ Norms Welfare Maximizing? 204
*Yes, when considering the norms through an ex ante prediction. The norms appear to be welfare maximizing in the prediction of their application to whaling. *No, when looking back at the actual application of the norms, ex post. 1. The whalers did not apply the fast fish loose fish rule according to species, which would have been welfare maximizing, but according to fishery. 2. The norms enabled the whalers to work together, which in turn abetted in the fast depletion of whales. The norms caused the whalers to be to efficient for their own good.