Abstract

Between 1900 and 1925, the American economy witnessed a remarkably successful effort to upgrade competition through associations. Unlike the prevailing interpretation of American industrialization, in which associations fell prey to antitrust and collective action problems, we find many associations that reinvented themselves from cartels to developmental associations. This transition marked two previously unrecognized varieties in economic institutions. In the first, associations joined markets and corporate hierarchies to create variety in American capitalism. In the second, associations used deliberation, cost accounting, and benchmarking to enhance productivity and create varieties of collective governance. This article explains the origins of developmental associations, outlines their principles, traces their implementation in the commercial printing industry, and surveys their distribution and performance effects across 344 industries. Based on these findings, we revise conventional institutionalist assumptions about order and agency to make room for institutional diversity and actors’ capacities for reflexivity and learning.