a) The market for cotton in the U.S. differed from pure market theory for two main reasons. First, cotton growers used slave labor. This drastically decreased the cost of production for U.S. growers and gave them an advantage over competitors which they would not have in a ideal market. Second, the U.S. government provided subsidies to U.S. cotton farmers. This also made the production of cotton in the U.S. cheaper than in foreign countries which again strays from pure market theory.
b) In chapter 3, Rivoli highlights the difference between cotton farming in Texas and Alabama in the Old South. A change in practice Mobile (Alabama) would take years, however in Lubbock (Texas) would take just months. Specifically, the use of tractors was picked up immediately by Texan farmers however was gradually implemented by those from Alabama. According to Rivoli "this led to drastically different labor patterns in the two regions, differences that would have lasting implications."
c) I was surprised with how big of a difference culture can make on innovation, even from region to region in the U.S. Specifically, I was surprised at how long it took farmers from Alabama to adopt the use of the tractor when Texans adopted it so quickly.
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