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# Adulterine Guilds

## Definition

Unauthorised trade associations that attempt to exercise corporate privileges without formal legal incorporation, which Smith notes were sometimes tolerated by medieval kings in exchange for annual fines, representing early forms of rent-seeking behaviour.

## Source Chapter

Book I, Chapter 10

## Context

Smith mentions adulterine guilds as examples of how the crown's prerogative to grant corporate charters was often used to extract revenue rather than protect public liberty. This historical observation supports his broader critique of how institutional arrangements can serve private interests at public expense.

## Economic Domain

Regulation

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