Abstract
The article aims to link the theoretical framework of social capital with historical analysis. It traces a controversy of half a century between landlords and tenants in Palestine and Israel and their attempts to influence the government’s policy in the rental market during crisis and transitions. The article portrays social capital as a decisive factor in the success or failure of landlords and tenants to promote their group interests and impact rent control policy. However, as the two groups are competing over the same resource, the triumph of one group comes at the direct expense of the other. In that respect, social capital could act as “double-edged sword”.
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