Stability, Specialization and Social Recognition
AbstractYang 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, nonmarket 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 three stages in organizational development: the presence of a stable relational structure; the presence of relational trust and subjective specialization; and, finally, the emergence of objective specialization through the social recognition of subjectively defined economic roles
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Bibliographic InfoPaper provided by Tilburg University, Center for Economic Research in its series Discussion Paper with number 2006-17.
Date of creation: 2006
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networks; stability; social division of labor; specialization;
Other versions of this item:
- C78 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Bargaining Theory; Matching Theory
- D85 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Network Formation
This paper has been announced in the following NEP Reports:
- NEP-ALL-2006-04-01 (All new papers)
- NEP-NET-2006-04-01 (Network Economics)
- NEP-SOC-2006-04-01 (Social Norms & Social Capital)
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