Why do informal markets resist formalizing, even when the gains of doing so outweigh its costs in the long run? While a number of responses to this question have been advanced, we discover that part of the reason could be located in the tacit knowledge (attributed to Polanyi, Hayek) embedded in the marketplace, on which market institutions run. This factor is not fully explored yet. Tacit (idiosyncratic, inarticulate, nonconscious) knowledge is acquired personally through experience and cannot be transferred or conveyed to anyone. This is the knowledge we use to act without knowing it in a propositional form. We present the case of one of India’s largest informal footwear cluster, located in the city of Agra. We show that informal markets, hinged on tacit knowledge, cannot evolve easily and therefore may remain locked-in, despite external pressures or incentives to formalize. The study shows that efforts to overcome informality and reaping the benefits of formalized market structures cannot be done without taking cognizance of the sticky intangible knowledge on which these markets rest.

为什么非正规市场抵制形式化，即使从长期来看这样做的收益超过其成本呢？尽管已经对该问题做出了许多答复，但我们发现部分原因可能在于市场机制所运行的市场中所隐含的隐性知识（归因于Polanyi，Hayek）。此因素尚未完全探讨。隐性（特质，口齿不清，无意识）知识是通过经验亲自获得的，不能转让或传达给任何人。这是我们用来行动的知识，而并不以命题形式知道它。我们以印度最大的非正式鞋类集团之一为例，该公司位于阿格拉市。我们表明，依靠隐性知识的非正式市场无法轻易发展，因此可能会被锁定，尽管有外部压力或促使其正规化的动力。该研究表明，如果不认识到这些市场所依赖的粘性无形知识，就不可能为克服非正式性和从正规市场结构中获取收益而努力。