From merchant to merchant-ruler: A structure-conduct-performance perspective of the East India Company's history, 1600-1765

Many nineteenth-century historians claimed that the English East India Company's trade and commercial activities, right from inception, were never really a financially profitable enterprise. This argument is incorporated within an altered structure-conduct-performance (SCP) paradigm to rearticulate the Company's history between 1600 and 1765. Rather than characterising the Company as simply a chartered monopoly, the article instead argues that the market structure in which it operated was competitive or contestable but, at the same time, wrought with high sunk costs and free-riders. This framework allows us to understand why the Company desperately pursued market conduct strategies to gain monopoly and monopsony power in England and India respectively, which simultaneously contributed to its transformation from merchant to merchant-ruler. In this process the Company redefined not merely industry boundaries but also those between industry and state.