Stability, specialization and social recognition

Gilles, Robert P., Lazarova, Emiliya A. ORCID: https://orcid.org/0000-0002-7178-0644 and Ruys, Pieter H. M. (2007) Stability, specialization and social recognition. Division of Labour & Transaction Costs, 02 (02). pp. 83-109. ISSN 0219-8711

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Abstract

Yang's theory of economic specialization under increasing returns to scale (Yang, 2001) is a formal development of the fundamental Smith-Young theorem on the extent of the market and the social division of labor. In this theory, specialization — and thus, the social division of labor — is firmly embedded within a system of perfectly competitive markets. This leaves unresolved whether and how such development processes are possible in economies based on more primitive, non-market organizations. In this paper we introduce a general relational model of economic interaction. Within this non-market environment we discuss the emergence of economic specialization and ultimately of economic trade and a social division of labor. We base our approach on four stages in organizational development: a primordial stage of chaos; the emergence of a stable relational structure; the emergence of relational trust and subjective specialization; and, finally, the emergence of objective specialization through the social recognition of subjectively defined economic roles. In turn, this paves the way for the introduction of market institutions.

Item Type:	Article
Faculty \ School:	Faculty of Social Sciences > School of Economics
UEA Research Groups:	Faculty of Social Sciences > Research Groups > Economic Theory Faculty of Social Sciences > Research Groups > Applied Econometrics And Finance
Depositing User:	Pure Connector
Date Deposited:	06 Mar 2014 12:26
Last Modified:	01 May 2024 11:30
URI:	https://ueaeprints.uea.ac.uk/id/eprint/47960
DOI:	10.1142/S0219871107000312

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