What lessons for economic development can we draw from the Champagne fairs?

► We offer a new explanation of the rise and decline of the medieval Champagne fairs. ► We analyze the contract-enforcement institutions at the Champagne fairs. ► Contract enforcement at the Champagne fairs was provided by public institutions. ► Contracts at the Champagne fairs did not rely on private-order enforcement. ► The success and decline of the Champagne fairs depended on public policies.