First purchasers with superior resale connections become middlemen in the diamond trade.

Evidence

In those situations where the first purchaser really does have superior connections for resale, he should enter the market as a middleman. This is observed: some of the largest manufacturers with the most extensive supply connections to sight holders, who often purchase rough stones in large parcels rather than individually, also run very active brokerage businesses. — Lisa Bernestein, Opting out of the Legal System, 227

Categorization

• XREF: Connects to the Coasean theory of the firm — transaction-cost reasoning about who intermediates vs. who transacts directly. — connects to: Wealthy merchants delegated market-place dealings to brokers to escape the common herd; The fish market was organized by binding producers to prescribed middlemen

Related

• Wealthy merchants delegated market-place dealings to brokers to escape the common herd (similarity 0.79)

Broader Connections

• Wealthy merchants delegated market-place dealings to brokers to escape the common herd #corroborates (0.82)
• The fish market was organized by binding producers to prescribed middlemen #exemplifies (0.78)