How does Shylock's character develop and change from Act 1 to Act 3?

I agree with the other answer, that Shylock becomes angrier and more resentful as time goes on. He is first angry at how Antonio and his friends have treated him. It's hard to blame him for this. As he explains in the following passage, they have tormented him for being a Jew:

He hath disgraced me and hindered me half a million, laughed at my losses, mocked at my gains, scorned my nation, thwarted my bargains, cooled my friends, heated mine enemies—and what’s his reason? I am a Jew.

Shylock goes on to say that he is just as human as a Christian, with the same desires and feelings and the same flesh that will bleed if pricked. He says he is also just like the Christians in wanting revenge for injuries. Taking shot at Christians, who are supposed to be forgiving, Shylock says that revenge is a "villainy you [Christians] teach me."

When Shylock's daughter Jessica runs off with a Christian, Lorenzo, this act of rebellion adds fuel to his fire. He is distressed to lose her, saying, "my daughter is my flesh and blood." He is upset too when he learns she traded a turquoise ring he had once given his wife for a monkey. If he was angry at the Christians before, Jessica's elopement with a Christian has made everything worse.

It is interesting that Shylock describes himself as the same as Christians because his flesh bleeds, and refers to his daughter as his flesh and blood. This imagery foreshadows the flesh and blood argument Portia will later use against him.

How does Shylock defend charging interest on loans in The Merchant of Venice?

In Shakespeare's The Merchant of Venice, Shylock tries to defend the charging of interest by referring to a Biblical story in the Old Testament.

The story he refers to is Jacob taking care of his uncle Laban's sheep (in the book of Genesis). Shylock relays the story of how Jacob manipulated an agreement with Laban to make out financially with regard to Laban's sheep.

Shylock describes Laban and Jacob agreeing that of Laban's sheep, any that were spotted would belong to Jacob. Shylock tries to say that Jacob had a way to provide for the birth of more spotted sheep than plain sheep.

Using a bit of superstitious "nonsense," Shylock explains what he says took place.

The skillful shepherd peeled me certain wands.

And in the doing of the deed of kind

He stuck them up before the fulsome ewes,

Who then conceiving did in eaning time

Fall parti-colored lambs—and those were Jacob’s.

In other words, the newborn sheep will look like whatever its mother saw while mating, so Jacob, knowing this, placed wands (a branch or stem of a tree) with spots on it, on the ground in front of the ewes. When the sheep were born, the many that were spotted, went to Jacob, according to Shylock, because of the steps Jacob had guaranteed to be successful. His thought is that trickery is not treacherous, as long as there is no outright stealing involved.

Antonio argues that the sheep were spotted because it was the will of God, not because of anything Jacob had done. And he asks Shylock what his point is, to prove that charging interest is a good thing?

This was a venture, sir, that Jacob served for—

A thing not in his power to bring to pass

But swayed and fashioned by the hand of heaven.

Was this inserted to make interest good?

Shylock will not be convinced otherwise, saying that this is what he practices when lending money:

I make it breed as fast.

So Shylock tries to twist the meaning of a Bible story to rationalize his uncharitable behavior.

What is the Duke's opinion of Shylock in The Merchant of Venice?

The duke is clearly compassionate. He feels pity for Antonio and states the following when he appears before him:

I am sorry for thee: thou art come to answer
A stony adversary, an inhuman wretch
uncapable of pity, void and empty
From any dram of mercy.

In this statement the duke calls Shylock 'a stony adversary' meaning that he has no feelings and is a tough opponent who is not willing to be swayed by any means. Shylock, he says, is pitiless and without even a smidgen of compassion. The implication is, therefore, that Antonio should expect the worst since Shylock will not back down, in any way, from his claim for restitution. Antonio acknowledges that he has learnt of the duke's numerous attempts to sway Shylock so that he may show clemency, but the Jew stubbornly refused to be turned.

Throughout the trial, the duke constantly appeals to Shylock to display some charity. He asks him to be merciful in the context of Antonio's unfortunate circumstances. When Shylock appears before him he addresses him, saying:

Shylock, the world thinks, and I think so too,
That thou but lead'st this fashion of thy malice
To the last hour of act; and then 'tis thought
Thou'lt show thy mercy and remorse more strange
Than is thy strange apparent cruelty;
And where thou now exact'st the penalty,
Which is a pound of this poor merchant's flesh,
Thou wilt not only loose the forfeiture,
But, touch'd with human gentleness and love,
Forgive a moiety of the principal;
Glancing an eye of pity on his losses,
That have of late so huddled on his back,
Enow to press a royal merchant down
And pluck commiseration of his state
From brassy bosoms and rough hearts of flint,
From stubborn Turks and Tartars, never train'd
To offices of tender courtesy.
We all expect a gentle answer, Jew.

The duke's appeal is quite clear: he believes (as do others, he says) that Shylock is pressing ahead with his demand until just before sentence is executed when he would then extend mercy and free Antonio from his claim. He says that Shylock's demand is cruel and if he should have the penalty carried out he would lose the forfeited amount. He beseeches him to show gentleness and love and seek only a portion of the principal amount owed to him out of pity for Antonio's losses which have put him at a great disadvantage. The duke uses metaphoric language to urge Shylock to draw pity from a hardened heart and display courtesy. He asks Shylock to give a gentle response.

Shylock, however, is not moved and demands the 'due and forfeit of my bond.' He refuses to accept any form of settlement. The duke then asks him how he would expect to have mercy if he had none. Shylock dismisses this contention, saying that he is only seeking justice and has not committed any crime. The duke is clearly upset by Shylock's recalcitrance and states that he may dismiss the court (and thus Shylock's claim), but he will give a learned lawyer, Bellario, an opportunity to address the court to finally settle the matter. 

Once Portia (appearing as Balthasar in disguise) had made representations to the court and determined Shylock's guilt in his malevolent desire to harm a citizen of the state, the duke pronounces the following sentence upon him:

That thou shalt see the difference of our spirits,
I pardon thee thy life before thou ask it:
For half thy wealth, it is Antonio's;
The other half comes to the general state,
Which humbleness may drive unto a fine.

The sentence is obviously used as a lesson in forgiveness. The duke makes it clear that there is a difference in how the court acts and what Shylock demanded. The duke spares him his life and awards half of his estate to Antonio, whilst the other half is forfeited to the state in the form of a fine. Furthermore, the duke orders that Shylock meets Antonio's demand that he become a Christian and donate his estate to his daughter and his son-in-law in the form of a will. If he should not, he will withdraw the pardon he had issued. 

Is Shylock a victim or a villain in The Merchant of Venice?

The two are not mutually exclusive. Just because someone is a victim does not make the person morally good. Villains can be victims too.

What makes Shylock an interesting character is that he has a complex nature. In certain ways, he is a stereotypical evil Jew of the literature of Shakespeare's period, racism and antisemitism being far more acceptable then than now. On the other hand, he is loyal to his religion and has been badly mistreated by Christians. His desire for revenge may seem vindictive, but it responds to a lifetime of being treated as almost subhuman. He is also a widower who greatly prizes the ring given him by his dead wife, Leah. Thus not only is he discriminated against by Christians but he has also suffered a personal tragedy and been left to raise his daughter as a single father.

His relationship with is daughter is fraught. She wants to be part of wealthy gentile society and appears quite materialistic. Although Shylock appears a harsh disciplinarian, one can sympathize with him as a single father trying to make sure his daughter does not end up being courted simply for her money.

While he is obsessed with money, his wealth is his only security and defense in a world that despises and mistreats Jews. He is not a pleasant person and is vindictive and obsessed with money, but his character is very much formed by his situation as a victim.

Is Shylock a victim or a villain in The Merchant of Venice?

As your question suggest, he's both.

He's disgracefully treated by the Christians: they mock his religion, refuse to trade with him, spit on him in the street, and - even in the trial scene - mock him and taunt him to his face. Throughout the play he's referred to as "Jew" rather than "Shylock", and you can see why he longs to "feed fat" his grudge against the Christians.

He is devastated when his daughter leaves him, without any warning, and without any evidence of negative behaviour towards her from him (she says "this house is hell", though the scene doesn't make it clear exactly why she feels like that). Shylock is, I think Shakespeare makes it very clear, a victim.

He is also a villain. He deliberately opts for the "pound of flesh" because he has a grudge against Antonio, and, when the chance comes to get his revenge, he behaves in an extremely undignified and certainly unmerciful way. He gloats in front of Antonio, even attending the gaoler who arrest him, and openly proclaims his right to the flesh, against any sense of common humanity, in a public court. He also values his money extremely highly - not negative in itself - but, when he seems to value his ducats more than his daugther, you have to be suspicious. He's undoubtedly also a villain.

You can make a case either way. For me, I'd argue that he's both at once: though like the Wittgenstein duck/rabbit, at any one moment he seems one or the other.

Why is Shylock considered a villain in The Merchant of Venice?

It is far from certain that the character of Shylock in William Shakespeare's play The Merchant of Venice is a villain. Indeed, if Shylock is a villain, it is only because he arranges with Antonio to be paid a pound of the latter's flesh should Antonio's fortunes wane and he be unable to otherwise repay the Jewish moneylender for the loan. Shylock's insistence throughout the play that this arrangement, entered into willingly by Antonio, be enforced casts him in a particularly negative light, and the anti-Semitism prevalent in Shakespeare's play is certainly intended to depict Shylock as the villain of the story. Antonio, Bassanio, and Portia are all good, decent human beings. Shylock is the antithesis of their good and benevolent nature. To conclude, however, that Shylock is a villain is to miss the point of The Merchant of Venice. While Shakespeare's play depicts the Jewish character as venal, the playwright does not ignore the context in which Shylock acts. In fact, Shakespeare took pains to provide the background necessary to illuminate the reasons for Shylock's nature, as is evident in the following passage from Act I, Scene III in which Shylock addresses Antonio and Bassanio regarding their agreement:

Signior Antonio, many a time and oft
In the Rialto you have rated me
About my moneys and my usances:
Still have I borne it with a patient shrug,
For sufferance is the badge of all our tribe.
You call me misbeliever, cut-throat dog,
And spit upon my Jewish gaberdine,
And all for use of that which is mine own.
Well then, it now appears you need my help:

Shylock has endured innumerable injustices and insults at the hands of the other characters. He is a moneylender because other reputable professions have been denied individuals of his faith. He has grown bitter, and is unrepentant with respect to his demand for a pound of Antonio's flesh as payment for the loan. Whether he is a villain, however, is entirely a matter of perspective.

Who is the protagonist in The Merchant of Venice? Why is Shylock portrayed negatively despite the discrimination he faces?

This question actually echoes questions that have been asked about this play for the last few centuries. It is fascinating to consider how stagings of this play have moved from presenting Shylock as something of a Jewish caricature to viewing him as a victim of the Christian-dominated society that he is a part of. What is so intrguing about the play is that it is never really clear cut about whether Shylock is, in the words of Lear, "more sinned against than sinning." On the one hand, Shylock is clearly very vindictive and takes his desire for revenge against Antonio to extreme lengths, so fixated is he on having his "pound of flesh." However, on the other hand, he is a man who is scorned, treated terribly and forced to endure significant hardship in the society that he is a part of. Not only is he spat on by Antonio, he then has to suffer his daughter stealing his wealth and then eloping with a Christian, betraying her hereditary faith and also treating objects of great sentimental value with careless regard. Note how Tubal incites Shylock's rage by reporting that he heard Jessica exchanged a ring for a monkey:

...it was my turquoise, I had it of Leah when I was a bachelor: I would not have given it for a wilderness of monkeys.

Shylock then can be depicted as a man who is not only kicked when he is down, but who is spurned and discriminated against during every single section of the play, culminating in his final shaming and disgrace when he is forced to convert to Christianity and see his wealth and possessions that he has worked so hard to accumulate go to his Christian son-in-law. This does seem to be extreme in terms of his punishment, and it could be argued that this treatment of Shylock reflects the anti-semitic prejudices of Shakespeare's day. It is important to remember that Christians historically have blamed Jews for killing Jesus, and the prejudice that Shylock experiences in this play is therefore perhaps representative of this. It adds further evidence to the argument that Shylock can be viewed as more of a victim than a villain, though throughout the play it seems that there is enough evidence to view both sides of this debate equally. Whilst Shylock is given perhaps the most eloquent words of the play, where he pleads for a shared humanity with his oppressors, in his famous "If you prick us, do we not bleed?" speech, at the same time this eloquence is used to mask and justify a brutal revenge that is sadistic in the extreme.

Who is the protagonist in The Merchant of Venice? Why is Shylock portrayed negatively despite the discrimination he faces?

Shakespeare's The Merchant of Venice is certainly a play characterized by ambivalence with, for one thing, the difficulty of interpreting in modern times the intent of Shakespeare's depiction of Shylock and the coexistence in Venice of Antonio and Shylock. Despite this acknowledged ambivalence, renowned Shakespearean critic Harold Bloom insists "The Merchant of Venice essentially is a romantic comedy," and Shylock is "a comic villain." As a villain, it is problematic, however, that Shylock would convert to Christianity and say that he is "content" to do so. Otherwise he is villainous: he charges exorbitant interest if he can; he is more upset about losing his money and jewels than about losing his daughter; he exacts a sadistic penalty from Antonio for failure to repay his loan. Shylock is, indeed, formidable when he faces the Duke of Venice and demands his bond:

I have possessed your Grace of what I purpose,
And by our holy Sabbath have I sworn
To have the due and forfeit of my bond.
If you deny it, let the danger light
Upon your charter and your city's freedom!
You'll ask me why I rather choose to have
A weight of carrion flesh than to receive
Three thousand ducats. I'll not answer that,
But say it is my humor. Is it answered? (4.1.36-44)

With Shylock as the villain, the protagonist is, therefore, the heroic person who defeats this villain; namely, Portia. For, the play is truly Portia's as the romantic element centers around her with the caskets her father has left for her suitors set against her love for Bassanio and her refusal to have her will curbed, as well as in her clever disguise as a lawyer in order to defend Antonio in an superbly convincing and eloquent speech that defeats Shylock in the best known passage of the play as well as the statement of theme:

The quality of mercy is not strain'd;
It droppeth as the gentle rain from heaven
Upon the place beneath. It is twice blest:
It blesseth him that gives and him that takes.
'Tis mightiest in the mightiest; it becomes
The throned monarch better than his crown. (4.1.186-192)

A final argument for Portia's being the protagonist and not Antonio is that Portia dominates the final act and again exhibits her cleverness and superiority in retaining the final word and the right to upbraid her husband.

Yet, Portia is flawed just as Antonio is flawed, underscoring again the ambivalence of this drama. For, they both fail to exhibit Christian charity at all times. Antonio hypocritically maligns Shylock for his profession which is also his own, and he refuses to show mercy to Shylock at the end; Portia is also unChristian in her remarks about her suitors, especially the Moroccan, to whom she bids "good riddance" along with all those of dark complexions. Like Antonio, she does not extend mercy to Shylock despite her having just argued for it to the court--"Thou shalt have nothing but the forfeiture,/To be so taken at any peril, Jew"(4.1.343-344).

In The Merchant of Venice, how does Shylock's self-perception contrast with others' views of him?

This is a great question. You are right in identifying a disparity between how Shylock views himself and how others view him. For me, you need to analyse Act I scene 3 to be able to grasp this difference. This is the scene where Bassanio and then Antonio go to Shylock to negotiate the terms of the loan, and Shylock makes clear in an aside his hatred of Antonio, but more than that: he establishes his position as a victimised and wronged Jew who has suffered racial prejudice from people such as Antonio for centuries:

If I can catch him once upon the hip,

I will feed fat the ancient grudge I bear him.

He hates our sacred nation, and he rails,

Even there where merchants most do congregate,

One me, my bragains, and my well-won thrift,

Which he calls interest. Cursed be my tribe

If I forgive him!

Shylock here pledges himself to revenge against Antonio, choosing him as a representative of the wrongs that he and his "tribe" have suffered. He appoints himself as the Jew responsible for gaining this revenge.

Note, however, that to Antonio, Shylock is a character akin to the devil. Following Shylock's allusion to the trick of Jacob in taking the good herd from his father in law Laban, Antonio responds:

Mark you this, Bassanio,

The devil can cite Scripture for his purpose.

An evil soul producing holy witness

Is like a villain with a smiling cheek,

A goodly apple rotten at the ehart.

O, what a goodly outside falsehood hath!

To Antonio, therefore, as to other characters, Shylock represents the worst of Jewish miserliness and acquisitiveness. He is a "Devil" in that he twists scripture to his purpose and is a hypocrite as he presents one face only to be a villain underneath.

What are Shylock's characteristics in The Merchant of Venice?

Shylock's character in Merchant of Venice is very complicated, especially in today's post-holocaust age. First, during the beginning of the play, Shylock's personality traits include very negative things such as greed and vindictiveness, which go along with the point of view of Antonio, Bessanio, Portia, and Gratiano, as well as Shylock's daughter who flees the Jewish community for love. Shakespeare used the source play The Jew of Malta, however, he portrays a must more three-dimensional character in Shylock than is portrayed in Malta. During the trial of Antonio and the whole "pound of flesh" bit, the audience doesn't see much other than the vindictiveness in Shylock's character, which is chocked up to an overweening focus on justice. Shylock's focus on "justice" as he sees it neglects the need for mercy. Of course, Portia's great "The quality of mercy" speech (Act 4, Scene 1) is an answer to this focus on justice alone. 

However, you have to remember that Shylock is not just a mustache-twirling-villainous picture of antisemitism. Shylock's character is actually a lot deeper than that. One of Shylock's greatest speeches is the "Hath not a Jew eyes" speech (Act 3, Scene 1), which calls the audience and the other characters to a remembrance of their common humanity. At the end of it all, Portia's mercy speech wins out in Antonio's favor, but not in Shylock's. The forcing of Shylock's "conversion" to Christianity, actually ostracizes him from both the Jewish community he belongs to and the Christian community, since he's not a true convert and is from a Jewish background. At the end of it all, Shakespeare has to abandon Shylock in Act 4 to maintain the comedy as a comedy. So, as far as Shylock's characteristics, Shakespeare shows a range of traits from vindictiveness, justice-loving, greed (as evidenced in his usury), all the way to his love for his daughter and need for a community that he is ultimately deprived of. 

If you're interested in an interesting look at Shylock's character, I would suggest the newer movie rendition of Merchant, which came out in 2004. It gives Shylock depth which his counterpart character in The Jew of Malta would never have. 

In The Merchant of Venice by Shakespeare, what are Shylock's positive traits?

It may be difficult to imagine the character of Shylock as having any positive traits, since his agreement with Antonio allows him to essentially murder him for failure to pay a debt. But most dramatic characters of any significance have positive as well as negative traits; without the ability to have some sort of empathy for an "evil" character, their evil seems two-dimensional. Shylock is a clever and successful man; these may be seen as positive traits, even as his success as a moneylender makes him greedy and somewhat difficult to deal with. Shylock is also a father who is devastated when his daughter Jessica elopes with Lorenzo. His emotional distress indicates that he does have some compassion and emotions worth sympathizing with. He is further devastated when Portia, posing as a doctor of law, finds him guilty in court of cheating a Venetian resident (Antonio) and claims he must surrender his fortune as punishment. Since he is a moneylender and values wealth, this is a fitting price to pay; however he is told he can keep half his fortune to give to his daughter if he renounces his Jewish faith and becomes a Christian. Shylock finds this horrifying, which demonstrates his loyalty to his religious faith; this can also be seen as a positive trait.

What are Shylock's fortunes at the end of The Merchant of Venice?

At the end of Act IV scene 1 things go very badly for Shylock indeed, and not just in terms of his literal "fortunes." Having found the loophole in the law that allows her to protect Antonio and to turn the tables on Shylock, Portia is quite merciless in following the law to its "just" close: having planned murder on another citizen, Shylock himself must now be held accountable. The Duke initially states that Shylock must give half of his wealth to Antonio and the other half tothe state. However, Antonio intercedes, asking for the punishment to be slightly modified:

So please my lord the Duke and all the court

To quit the fine for one half of his goods,

I am content, so he will let me have

The other half in use, to render it,

Upon his death, unto the gentleman

That lately stole his daughter.

Thus Antonio asks for the state to relinquish its right to receive half of Shylock's goods under the following conditions: Antonio must have half of Shylock's wealth to keep in trust for Lorenzo and Jessica, Shylock must become a Christian, and, when he dies, Lorenzo must inherit everything. There has been much criticism regarding the severity of this punishment and whether this is a final act of cruelty from Antonio against his enemy. Certainly, for a man whose identity is so bound up in his religion, forcing him to convert would have been a terrible blow.

How is Shylock depicted as bloodthirsty and selfish in The Merchant of Venice?

Throughout the history of the play, and definitely from the perspective of modern audiences, Shylock is one of Shakespeare's most complex characters. He has been portrayed as a ridiculous money-grubbing villain, a man rebelling against his oppressors, the epitome of evil, and more. Some of his words and actions absolutely suggest someone who is interested in violence to a distasteful degree. The most relevant example of this is his relentless pursuing of his "bond," the pound of flesh Antonio is meant to give him if he is unable to repay the loan. Upon hearing that Antonio will not be able to repay the loan, Shylock says:

"I'll plague him [Antonio];
I'll torture him" (3.1.115-116). 

Shylock's glee at a consequence that won't get him his money back and may kill Antonio is shocking to the Christian characters and doesn't buy him a lot of sympathy with the audience either, especially as he is completely unwilling to back down, despite all arguments and protestations until he is forced to. 

Additionally, one could look to his daughter Jessica and her flight from her father and his house as evidence of his cruelty. In Act II, scene 3, she claims her house is "a hell" and is more than happy to run away with her father's money and mother's ring and live it up with the Christians. When she does this, Shylock's reaction is also telling, running down the street yelling about his "daughter" and "ducats" (money) in equal amounts. 

Still, there are two sides to these examples. Antonio, for instance, has made no secret of his anti-Semitism and has regularly abused Shylock, not to mention made business hard for him. It's not surprising that Shylock would harbor such deep hatred for him. Furthermore, Jessica is shown to be frivolous in her selling of her mother's ring to buy a monkey, of all things. Though Shylock has a blood-thirsty element in his personality, he also has some reasons for his actions.

In The Merchant of Venice, how does the courtroom react to Shylock?

Your question would be a bit more clear if you had mentioned character names, if you are interested in reactions to Shylock and behavior.  The courtroom itself cannot react to anything.  For this answer, I will equate "courtroom" with the Duke, who is the arbiter of justice in the court of Venice.  The scene is Act IV, scene i.

It is the clear from the opening words of his first lines that the Duke is biased against Shylock.  He calls him:

A stony adversary, an inhuman wretch

Uncapable of pity, void and empty

From any dram of mercy.

These accusations, as far as the events of the play are concerned, are technically true, as least as far as the Christian characters are concerned.  Shylock is the comic villain of this play, and as such, is painted as a bad guy, just as Don John in Much Ado or Malvolio in Twelfth Night are.  Even though Shylock has a moving speech about the humanity of Jews, the character himself is very two-dimensional in his villainous designs, bent on revenge.

Once Portia turns Shylock's desire only for justice against him, instructing him that he must only take a pound of flesh for his bargain and no blood, she turns the tables on him once more, producing another law of Venice that states that if any "alien" (which Shylock is; being a Jew he cannot be a citizen of Venice) should make attempt on a citizen's life, he should forfeit all his lands:

And the offender's life lies in the mercy

Of the duke only. . .

And from this law, Shylock is stripped of all his lands and goods, but, owing to the mercy of the court (the Duke), his life is spared.  The Duke says:

That thou shalt see the difference of our spirits

I pardon thee thy life before thou ask it. . .

And so, the courtroom of Venice begins the scene with a strong bias against Shylock, but ends the scene in good, Christian charity, granting mercy on Shylock and sparing his life.

For more on the trial scene and the Duke of Venice, please follow the links below.

What is Shylock's role in The Merchant of Venice?

For various reasons, Shylock is the undisputed antagonist of the story. For one thing, he is the mirror opposite in character, personality, and religion to the play's protagonists. Whereas Portia cherishes mercy, Shylock is vindictive; whereas Antonio is the soul of generosity, Shylock is greedy and grasping; and whereas Bassanio is a warm and sympathetic character, Shylock is anything but.

In opposition to these characters, all of whom are Christians, Shylock is a Jew. If anything, this makes him seem even more separated in the play, as his whole religious outlook is alien to everyone else's. Shylock is a member of a traditionally despised ethnic and religious minority, subject to hatred and crippling legal disabilities, and this puts him at odds with the Christians he encounters in the play, at least in the eyes of the characters and Shakespeare's society.

It has seemed to successive generations of scholars, literary critics, and playgoers that Shylock, far from being the villain of the piece, is actually quite sympathetic, given that much of his ostensibly vindictive behavior can be traced to the unjust treatment he has received as a Jew in Venice.

Even so, in purely dramatic terms, Shylock remains the play's antagonist. It is his implacable opposition to the play's various protagonists that in large measure drives forward the plot and is responsible for virtually all of the play's most important developments. Whatever we may think of Shylock as a character—even if we find him more than a little sympathetic—doesn't change the fact that he is still the antagonist and is intended to be seen as such.

How does The Merchant of Venice end in tragedy for Shylock?

Events in Shakespeare's The Merchant of Venice ultimately become tragic for Shylock the father, Shylock the usurer, and Shylock the Jew.

--Shylock the father

Shylock's tragic losses, which are due mostly to his selfishness, begin with the betrayal of his daughter Jessica. She steals much of the family jewels, runs off with a Christian who is a close friend of his enemy Antonio, and even converts to Christianity because she hates her father's conduct and associates much of his behavior and attitudes to his being a Jew:

Alack, what heinous sin is it in me
To be ashamed to be my father's child?
But though I am a daughter to his blood,
I am not to his manners. O Lorenzo,
If thou keep promise, I shall end this strife,
Become a Christian and thy loving wife. (2.3.16-21)

Further, Jessica squanders the family heirlooms on frivolous things, such as trading her mother's turquoise ring for a monkey, an act which adds "insult to injury" for her father when he is informed of his daughter's betrayal and actions.

--Shylock the usurer

During the time of the setting of the drama, the Catholic Church forbids usury, so none of the Venetian merchants or moneylenders are allowed to practice this form of lending. On the other hand, Shylock's greed for money motivates his usury, and, as a Jew, he can charge interest. Therefore, in his avarice, he loans his mortal enemy money with the diabolical scheme of extracting flesh in payment, a scheme which backfires on him. For, Portia, who is disguised as a doctor of law, points out that the agreement between Antonio and Shylock does not allow for the spilling of blood in the extraction of payment if the loan is not met. Therefore, Shylock cannot collect on the debt, and is later punished for his usury.

--Shylock the Jew

Considered a heathen by the Venetians, Shylock is reviled and when the opportunity presents itself, the Duke punishes him severely, according to the Venetian law:

If Shylock takes a drop of Christian blood from Antonio, then the law of Venice states that the Republic of Venice can confiscate his land and goods because he is a foreign national. According to another Venetian law, if a foreign national such as Shylock seeks the life of a Venetian citizen, whether directly or indirectly, and is found guilty, he then forfeits half of his wealth to his intended victim, with the other half going to the state (4.1.344-359). The personal fate of the guilty national then is up to the ruler.

If Shylock were a Venetian and not a Jew and a foreign national, the tragic results of the trial would not have occurred as they do.

Describe the character of Shylock in The Merchant of Venice.

There is no understanding Shylock in the Merchant of Venice without knowing something of the historical position of Jews in Europe and England. In short, Jews were generally hated. They were relegated to specific town sectors for living quarters. During the various Crusades, knights would stop along their way and slay Jews on their journey to Jerusalem. Jews were forbidden to work at most jobs, leaving the role of money lender as one of their only non-menial options. Many countries had expelled Jews from their borders, including England.

Jews were forbidden in England during the reign of Elizabeth I. In 1594, Roderigo Lopez, Queen Elizabeth's Jewish physician, who was in England under special dispensation, had been tried for attempting to poison the Queen. Shakespeare wrote Merchant of Venice between 1596 and 1598, two to four years after the Lopez trial.

Shylock is a man for whom all these historical factors are the lifeblood of his being. He is a man hated and despised by country, community and individual citizens. His daughter, who shares the same ethnic history, should respect and honor him yet she does not; she puts her heart above her head and elopes with a Christian. Not only that, but she insults her father, perhaps symbolically insulting the history he has lived through, by stealing his money and a ring that belonged to his wife, granted, his wife was wife and mother.

Shylock's qualities are revealed through his words and actions and through how people treat and interact with him. He speaks of what he hates. He says his daughter will be damned for her theft, whether he means that as a religious truth or as a personal denunciation isn't clear. He makes impossible lending bonds with real hope that he will be able to carry out the extraordinary terms of a pound of flesh taken from any part of the body he wishes. He is publicly humiliated and insulted; he is disparaged; he is mocked. Yet he continues to do business and care for his daughter. He continues to make purchases in the market place. He continues to try to make a decent life for her and himself.

These things tell us that Shylock has been emotionally and psychologically battered but that he maintains his human dignity and self respect in the face of the cruel inhumanity of hatred he receives. He shows that he has courage and fortitude; most would rather go hide in the country as a farmer than receive cruel jaunts and jeers and more vicious insults daily in town. His reactions to the loss of his wife's ring and his daughter's abandonment show he has a true capacity for deep love, regardless of the terms between him and Antonio.

But Shylock has also yielded to bitterness and anger, which have made him hateful. He is so hateful, in fact, that he is willing to abandon one of the highest precepts of his God, which is to reject vengeance because God says that vengeance belongs to Him only. So Shylock is also vengeful, and he dishonors his God in just the same way that Jessica dishonors him.

Shylock is not always very well understood by scholars and students of Shakespeare. It is entirely possible that Shylock is meant by Shakespeare to demonstrate the truth that Christians have failed their religion and God just as surely as Shylock, who yields to hatred and vengeance, has failed his religion and God.

For more on the history, see Historical Background. For more about Merchant of Venice and Shylock, see The Literature Network.

Describe the character of Shylock in The Merchant of Venice.

Here are some ideas for elements to include in your character sketch of Shylock in Shakespeare's The Merchant Of Venice:

1) His occupation.

2) His religion

3) His financial status

4) His motivation for refusing a reasonable request to pay back a due debt.

5) His feelings about Antonio

6) His inability to be merciful

7) His attitude towards those who follow a different religious journey to him.

8) His worries about the undercutting of the profits in the moneylending business in the city

9) His feelings about Antonio's treatment of him in public

10) His defence about following the example of Christians in retribution

Finish by examining how far the character of Shylock as a Jew is a stereotype.

This link will help you 'flesh out' your sketch:

How does Shylock's character change from the start to the end of The Merchant of Venice?

The answer to this question, as with anything regarding drama, depends somewhat on the actor playing the role. On film we have seen, from the late 1970s forward, radically different portrayals of Shylock by Laurence Olivier, Warren Mitchell, and Al Pacino. Modern productions have correctly, in my view, emphasized Shylock's unfortunate position in being victimized by the bigotry aimed at him. Initially, he is embittered but still shows a degree of self-confidence that enables him to "bear with a patient shrug" the insults and outrages leveled at him. He knows that Antonio and the others are hypocrites and that their discrimination against him is unjustified. Within the context of the Renaissance world (and unfortunately more recent times as well), Shylock has no recourse but to seek retribution:

And if you wrong us, shall we not revenge? If we are like you in the rest, we will resemble you in that.

But this ends up Shylock's undoing. In emulating the Christians who, in their own hypocritical way, endorse vengeance as a legitimate recourse, he dooms himself.

When his daughter Jessica elopes, Shylock shows an emotional loss of control, understandably, which contrasts with his earlier self-assurance. In the courtroom scene, when he has been defeated, he is reduced by his adversaries into saying, resignedly, "I am content." Again, much of the finality of this statement, and how it represents the changes Shylock has undergone, depends on the actor playing him and the way he speaks that final line.

Is Shylock more of a victim or a villain in The Merchant of Venice?

This is a question that literature students have grappled with for a long time. There is enough evidence to argue either way, so it comes down to the personal opinion of the student at the end of the day. On the one hand, Shylock certainly seems like a villain. He deliberately pursues vengeance, hoping to kill Antonio by claiming his pound of flesh and therefore becoming a hero of Judaism against his Christian persecutor. He pursues this hope to the very end of the court scene, ignoring Portia's eloquent words counselling mercy, and in this sense he is judged in the same way that he would judge others. He says that he would rather have his wealth back than his daughter, even going as far as to say that he would rather have his daughter dead and his wealth back. Even parts of his speech that are designed to evoke sympathy, such as Shylock's famous "Hath not a Jew eyes?" speech, really seeks to justify his own barbarity in claimining his pound of flesh. All of these points strongly suggest that Shylock is more of a villain than a victim.

However, at the same time, the reader is struck by the way that Shylock has been used and abused by those around him. Antonio spat in his face and insulted him and is quite open about his hatred of Shylock to his face. His eventual fate, in being forced to see all of his wealth go to a gentile and having to abandon his beloved faith and become a Christian, strikes the audience as being cruel beyond measure. The treatment he receives at the hands of his daughter, Jessica, who steals her fathers wealth only to squander it, adds insult to injury. Note what Shylock says in response to Tubal's news that Jessica has exchanged a ring for a monkey in Act III scene 1:

...it was my turquoise, I had it of Leah when I was a bachelor: I would not have given it for a wilderness of monkeys.

Jessica has deliberately taken an object that she knows is of inestimable value to her father, because it was a gift from her mother, and exchanged it for a monkey, insulting both her father and her mother's memory. These points strongly suggest that Shylock is a villain. Both sides can easily be argued, but as always with such questions, it is important that any answers are fully supported with textual reference and that both sides of the question are considered.

How does The Merchant of Venice end as a tragedy for Shylock?

Before answering this question, it's worth pointing out that The Merchant of Venice is not traditionally considered to be one of Shakespeare's tragedies; rather, it's often known as a "problem play," as certain key elements (such as Shylock's experience after his legal defeat) are left basically unresolved. Be that as it may, it is possible to find tragic elements in the character of Shylock, and it could certainly be argued that the play ends in tragedy for him.

Consider, for instance, Shylock's fate: oppressed by the Christian community in Venice, Shylock is driven to seek revenge on Antonio, an anti-Semitic merchant. Just when it seems Shylock has the upper hand, though, his pride and eagerness cause him to overlook a potential loophole in the contract he drew up with Antonio, and this loophole is swiftly used to bring about Shylock's downfall, which includes the loss of most of his fortune and a forced conversion to Christianity. While Shylock can in many ways be seen as the antagonist of the play, it's difficult to avoid pitying him in the end, as his fate seems particularly tragic when one considers how much oppression Shylock has already faced. As such, after taking into account the dramatic nature of Shylock's downfall, it could certainly be argued that the play ends as a tragedy for him, even if the play itself is not a classic Shakespearean tragedy. 

How does Shylock develop or change as the play progresses?

I am not sure Shylock changes that much - in a sense one of the main themes in the play is that of penitence, yet Shylock does not develop or change enough to show any contrition. Perfect contrition is necessary in christianity in order to recover love of God and forgiveness.

Shylock will not do so or offer mercy himself at the beginning. The question is why he refuses what seems to be a sensible request. Shylock admits that he does not like Antonio, saying at one point, "I hate him for he is a Christian" (I.iii.42). Also he says Antonio lends money out without charging interest (a christian charitable dictat) and brings down the interest rates .At the trial he says his reason for disliking Antonio is as inexplicable as the reason some people hate cats or gaping pigs or cannot stand the sound of bagpipes. Actually they both hate each other. Antonio spat at Shylock and treated him like a dog in the Rialto, a public area of commercial exchange. When asked,  Shylock tells what he will do with Antonio's flesh since, unlike cows or goats, it is useless. He says "To bait fish withal" (III.i.53). In the next famous speech, Shylock tells how Antonio has laughed at his losses and mocked his successes. He holds that Jews have learned to take revenge from the example set by Christians and views himself as the wronged party in the row and considers his actions to be justified vengeance

Is The Merchant of Venice's Shylock villain or victim?

In the play "The Merchant of Venice" by William Shakespeare, it is important to remember that the author shows us a man of pride as well as a man of vengeance. Christianity teaches that nearly everything can be forgiven if a person is truly sorry - look at the murderer Barrabas on the cross with Jesus. Jesus probably knew that Barrabas was a victim of circumstance and upbringing and din't know any better until he saw the light at the very end through Jesus love and suffering. Jesus told this villain that "this day thou shalt be with me in Paradise" as a reward for his penitent sorrow which was genuine. Shylock, on the other hand was not sorry and was prideful to the end - he too was persecuted and a victim, but maybe he couldn't see or take that final step away from vengeance - and pride? He didn't have true contrition according to popular sentiment at the time.

Is The Merchant of Venice's Shylock villain or victim?

You will no doubt get a lot of opinions about whether Shylock is a villain or victim, and all of them will be valid. There is also the view that Shylock is both villain and victim. I would suggest that you consider a few things before making up YOUR mind.

Shylock is definitely a conniving, mean-spirited money-lender in this play. However, consider him in the historical context. The Elizabethan audience was for the most part Christian. They still held very prejudicial view of Jews and blamed them for crucifying Christ, which, by the way, is a perversion of Christianity because Christians believe that Christ was crucified for the sins of the world, everyone included, so it is our sin that cruicified Christ, not the Jews. Shylock bemoans the fact that:

'For sufferance is the badge of all our   tribe,

The Jews had been persecuted throughout Europe, kicked out of many countries. Everywhere Shylock goes, he is called a 'currish Jew" or a dog. Naturally, hate has built up in his mind and in his heart and if he can get even with non-Jews, he will, and in this play, he does. And Antonio is not innocent. He has not treated Shylock with respect in the past.

Shylock is very bitter and wants vengeance. So, can a person who has such hate in his heart really be a victim? Maybe.

But the idea of vengeance and getting even is antithetical to both Judaism and Christianity. Take the story in the Jewish Old Testament of Joseph. If anyone had the right to seek vengeance on his brothers, it was Joseph - they sold him as a slave. And yet, Joseph tells his brothers, "Am I in the place of God?" He tells them what they meant for evil, God meant for good, and he does not avenge himself against them. And in the New Testament, many places the idea is expressed that "Vengeance is mine, says the Lord."

So the fact that Shylock is  Jew does not excuse his vengeful heart. That's my view.

What do you think?

Read the play and analysis here on enotes.

How is Shylock portrayed at the start of The Merchant of Venice and how does he change by the end?

At the start of The Merchant of Venice Shylock is a successful money lender with a thriving business on the Rialto. He is wealthy, with a good house and daughter. He is clearly identified as a Jew whom the Christians judge harshly, in particular Antonio who cannot do enough to defame and denigrate Shylock.

At the end of the play, Shylock is a broken man. His desire for vengeance, no matter how justifiable, collapsed around him. The court rightly found against him for threatening the life of a citizen (a pound of flesh was always an absurdly extreme condition, which Antonio foolishly and arrogantly agreed to). His daughter has renounced him and their religion. She has stolen his wealth and his keepsakes. His means of livelihood are taken from him by the court as part of his judgement and he is forced, as was often the case, to become a Christian.

The lessons pointed out by Shylock's changes are several. Two of them are: (1) He was wrong to ignore God's injunction against taking vengence. (2) Even if Antonio was an arrogant fool, he was wrong to require a contract that might take his life.

How might Shylock be the victim of The Merchant of Venice?

... you have rated me
About my moneys, and my usances:
Still have I borne it with a patient shrug,
For sufferance is the badge of all our tribe:
You call me,—misbeliever, cut-throat dog,
And spet upon my Jewish gaberdine,
And all for use of that which is mine own.

This, coupled up with the famous "Hath not a Jew eyes?" speech, is the usual justification for Shylock's status as a victim in the play. Antonio has berated ("rated") him in public about his business, called him names, and even spat upon him. Yet he is still prepared to lend him money (though, of course, he does admit to feeling vengeful).

Shylock is a human and a sympathetic character. And, putting aside his own monstrous behaviour, the Christians treat him badly. Moreover, the ending for Shylock is extremely striking. Forced to give up his wealth to his daughter and to become a Christian, he hardly says a thing:

PORTIA:
Art thou contented, Jew? what dost thou say?

SHYLOCK:
I am content.

PORTIA:
Clerk, draw a deed of gift.

SHYLOCK:
I pray you give me leave to go from hence:
I am not well; send the deed after me,
And I will sign it.

And then he exits, never to reappear. Though Shylock's insisting on having his bond fulfilled is harsh, but there's something extremely unfair and unpleasant about the unforgiving, unmerciful way the Christians extract their revenge in such a self-satisfied way. I'd argue that, even if not elsewhere, at the end of Act 4, he's a victim.

To what extent is Shylock a tragic villain in The Merchant of Venice?

There are many different viewpoints on whether or not Shylock is a sympathetic character. Some see him as a pure villain, whereas others tend to sympathize with him on account of the anti-Semitic persecution that he is forced to endure.

A synthesis of the two points of view can be reached by regarding Shylock as a tragic villain. The usefulness of this approach is that it allows us to do justice to the many different facets of Shylock's complex character. On the one hand, he's a tragic figure in that he is the object of unspeakable hatred and abuse, a member of a hated and persecuted religious and cultural minority. On the other hand, he responds to his ill-treatment in a cruel and vindictive way, hating Christians and vowing revenge upon them. He does so by insisting that the terms of his “merry bond” with Antonio are followed to the letter.

As a Jew, Shylock is undoubtedly a tragic figure. The tragedy he embodies is one that's shared by those like him right across the length and breadth of Europe. They too are subjected to hatred, persecution, and abuse. But Shylock's vindictive response to such persecution is different from theirs. It is this, more than anything else, that makes him a villain.

In The Merchant of Venice, is Shylock portrayed more as a victim or villain?

Based on two things that occur in The Merchant of Venice, it seems that Shakespeare is establishing Shylock as a pseudo-villain who is a victim. The first occurrence is the conversation between Antonio and Shylock in the marketplace while Shylock is deciding about advancing the three thousand ducats. The conversation is preceded by an unfortunate, though seemingly innocent, remark from Bassanio. The other occurrence is the promise made by a Christian to a Jew, at the end of the play, in which Antonio promises to restore Shylock's wealth to its rightful Jewish heir, Jessica, who represents with Lorenzo the joining of Jew and Christian.

To elaborate on the first, in the marketplace, Bassanio says that Shylock can talk with Antonio that night if he will join them for dinner. Bassanio doesn't seem to present this opening as a dare or as a threat but as a genuinely innocent gesture with a statement of truth: they are going to dine; Shylock can see Antonio at dinner. A goodly chunk of dialogue in Act I Scene 1 establishes that the friends are going to join for dinner that night.

Shylock reacts to this with umbrage, taking offense, because as a Jew, he is bound to keep himself kosher, which prohibits joining Gentiles (non-Jews) at meals. Shylock doesn't seem to be presenting a prejudiced attitude here because he says he will walk with, talk with, do business with, etc, Gentiles but, because of his ethnicity and religion, he will not eat with Gentiles.

Then enters Antonio and his conversation is in stark contrast in tone to both Bassanio's and Shylock's conversation: humanity exits, animosity enters. Shylock is surprised that Antonio is coming to him (Antonio did say that they would exhaust all resources to find Bassanio a loan on Antonio's credit...) for a loan because of all the terrible things Antonio has said about him and all the insulting, unkind behaviors he has exhibited toward him. With every opportunity that Antonio has of offering a humble presence befitting one who is asking a former (current) enemy for a favor, Antonio chooses instead to stick a metaphorical verbal knife in Shylock's heart and twist it and insult him and berate him more and more.

Shylock has a growing rage that is kept subdued but is there nonetheless and finally explodes with the inspiration of the bond of a pound of flesh, which Antonio arrogantly, callously, pridefully agrees to rather than show humility, kindness, rationality or contrition for hateful words (all gross violations of Christianity). Bassanio recognizes the enormity of what is about to transpire even though Antonio's foolishness blinds him from seeing.

This incident, when looked at without a bias toward a universal Christian society, depicts Shylock as the victim of Antonio's very un-Christian pride and hatred, a hatred which has propelled Shylock to embrace revenge, an equal violation of his religion of which he was formerly so careful--he refused to even smell pork--and into the position of a Jewish villain against a Christian assumed to have been taken advantage of. The details of their marketplace conversation prove, however, that the Christian, while violating the premier tenets of his religion, took advantage of and victimized the Jew.

What characteristics do you see in Shylock's speeches?

Shylock often references the anti-semetic treatment he has received throughout the play. While this is the obvious answer to this question, it is not simple anti-semeticism to which he refers. Shylock also references his deep religious values and personal spirituality. His Biblical stories he references not in spite, but in deep rooted belief and one must almost feel a sense of sincere sympathy for him. He is not acting purely in a veangeful manner, but in accordance with what he believes to be divine spiritual law and his inner belief system. This is also why he references the loss of his daughter through her betrayal and conversion to the Christian faith so frequently.

What characteristics do you see in Shylock's speeches?

Shylock often shows his concern with money, but also his resentment concerning how he is treated by the Christians, and sometimes he shows a humanity that is difficult for the audience not to respond to with compassion.  His speech in 3.1 where he clearly says he wants revenge indicates how much he resents the way people mistreat him. "He [Antonio] hath disgraced me and hindered me half a million, laughed at my losses, mocked at my gains, scorned my nation....," says Shylock to Salarino, showing how deeply he resents their treatment of him. He then insists on his humanity: "Hath not a Jew eyes?  Hath not a Jew hands, organs..." When he discovers his daughter has run away with his money, we see how avaricious he is. "My ducats, my daughter!" he exclaims, causing us to think, perhaps, that he values his money as much as or perhaps more than he does his daughter.

Why can Shylock can be considered the villain of The Merchant of Venice?

In a world in which Bassanio and Antonio can be vain and foolish and absurdly pledge to pay a debt, taken from a man whom they persecute and despise and unfairly treat with physical and verbal abuses, by the extraction of a pound of flesh, then an enraged Jewish moneylender can be cast as the villain. Is this a just position in which to cast Shylock? Unfortunately, yes, because of two things. The first is that he asks for a forfeit repayment that is against the law. Second is that he violates his religious faith.

Shylock knows full well that cutting a pound of flesh from a man will kill or grotesquely maim him. He also knows full well that such a contract is a violation of the law of the land. He also knows full well that a court battle would be required to permit him to carry the contract out and that, since it violates the law in the first place, it is highly likely that he would lose his court suit.

Shylock's faith of Judaism prohibits revenge. The Pentateuch Books of the Laws (a portion of the Old Testament) clearly state that revenge belongs to G-d and that Jewish people are not to seek revenge. King David often beseeches G-d in the Psalms to take revenge against David's enemies because he himself may not, must not. Yet Shylock designs the contract of forfeiture precisely for revenge. This is confirmed in his soliloquy in which he states that a Christian's first response to an offense is revenge, therefore his response to accumulated offenses will be revenge; he will follow the Christians' lead.

Shylock pays dearly and ironically at the end of the play for abandoning his faith and adopting Christian practice (which, incidentally, is also a violation of Christian faith). Shylock's legal punishment when he loses his case in court includes a mandatory conversion to the Christian faith, anathema to Shylock.