History & Area Studies / Thematic History / Economic History & Industrialization

How Swedish Market Prices Merged 100 Years Before Railroads

Mario J. Crucini, Gregor W. Smith

Think the Industrial Revolution created global markets? Think again. This video dives into a groundbreaking study by economists Mario J. Crucini and Gregor W. Smith, analyzing 500,000 price observations across 32 Swedish towns from 1732 to 1914. The shocking find: prices started converging in the 1760s—decades before canals, trains, or telegraphs. We explore why distance mattered more for some goods (like charcoal and timber) than others (like beef and butter), and how institutions, not technology, were the real drivers of market integration. By the end, you'll see how trust, trade laws, and credit could unite markets long before steam power. No jargon, just mind-blowing history.