What's so funny about The Merchant of Venice?

The play definitely begins on a dreary note, with Antonio's "In sooth, I know not why I am so sad. / It wearies me, you say it wearies you." And however you respond to the character of Shylock, you can hardly say that what happens to him is funny. In fact, the humanity of Shylock ("If you prick us, do we not bleed?"), which Shakespeare emphasizes even while playing with the anti-semitic stereotypes that his audience would have taken for granted, makes one wonder if the play shouldn't be reclassified as a tragedy.

So what makes the play a comedy? It was definitely classed with the comedies, coming right after Midsummer Night's Dream in the first complete publication of Shakespeare's plays, the posthumous "First Folio" of 1623.

It depends of course on how one defines a comedy. The Canadian Oxford Dictionary defines comedy as "a play, film, etc., of an amusing or satirical character, usually with a happy ending." This is certainly an operative definition for us when we go looking for a comedy to rent in the video store.

The literary critic Northrop Frye, however, defined comedy rather differently (and he had Shakespeare's comedies, including his late comedies or 'romances' specifically in mind). Frye's definition is this:

A comedy is not a play which ends happily: it is a play in which a certain structure is present and works through to its own logical end, whether we or the cast or the author feel happy about it or not.

So, Frye's definition of comedy is not about happiness or amusement or satire but about a certain kind of inevitable, driving structure -- as inevitable as spring following on winter. Frye in fact sees the structure of Shakespearean comedy as "natural," just like the progression of seasons.

In his 1965 book, A Natural Perspective: The Development of Shakespearean Comedy and Romance, he outlines the structural stages of a comedy thus:

Stage I: irrational law, obstacles, obstinate father, winter
Stage II: disguise, veiling identity (especially sexual), confusion, misunderstanding
Stage III: clarification, metamorphosis, fertility, spring, forgiveness

It is easy to see how The Merchant of Venice ends with the clarification of veiled identities (e.g. Portia and Nerissa). But forgiveness?