The Turgot Collection

Fairs and Markets

Great fairs were common in Europe in Turgot’s time and earlier, and he here considers the economic principles that underlie these institutions. In order for a fair to be able to maintain itself, the sellers must be able to recover the transportation costs of getting their goods to the fair. Likewise, buyers must think the trip worth enough to them to justify their expenses of traveling to the fair. Once a fair is established, the fact that a large number of deals can be made there becomes self-reinforcing. More people will travel to the fair, and this will permit more deals to be made. Many fairs have risen to prominence because they offer freedom from burdensome economic regulations by the state. The gains from this freedom do not offset the losses caused by unneeded regulation.