Greef Karga sends a message to Mando to notify him that Nevarro has been overrun by Imperial troops. This results in the Guild no longer being as productive since they are lacking institutions that have been destroyed through the Imperial take over. Institutions are the rules placed in a society that keep parties’ behaviors in balance and allow transactions to occur at minimal cost; this is extremely beneficial for the Guild, along with other cartels. The Guild responds by attempting to reinstate existing Institutions since they benefit from the economic growth. Even industries with many members, such as the Guild, will work in collective self-interest to form Institutions. This is similar to the industry of different lobbying groups in Washington D.C. Learn more about Institutions in this clip!
Discussion Questions for “Cartels Face Changing Institutions”