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Stability, Specialization and Social Recognition

Author

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  • Gilles, R.P.
  • Lazarova, E.A.

    (Tilburg University, Center For Economic Research)

  • Ruys, P.H.M.

    (Tilburg University, Center For Economic Research)

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.
(This abstract was borrowed from another version of this item.)

Suggested Citation

  • Gilles, R.P. & Lazarova, E.A. & Ruys, P.H.M., 2006. "Stability, Specialization and Social Recognition," Discussion Paper 2006-17, Tilburg University, Center for Economic Research.
    • Handle: RePEc:tiu:tiucen:7fa36115-a85c-44d2-ad23-0e36c9ab4b87
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    References listed on IDEAS

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    Cited by:

    1. Robert P. Gilles & Emiliya Lazarova & Pieter H. M. Ruys, 2006. "On Socio-Economic Roles And Specialisation," Economic Papers, The Economic Society of Australia, vol. 25(2), pages 157-170, June.
    2. Pieter H.M. RUYS, 2014. "Architecture of an Economy with Social Enterprises: the Relational Capacity Approach," CIRIEC Working Papers 1413, CIRIEC - Université de Liège.
    3. Gilles, R.P. & Lazarova, E.A. & Ruys, P.H.M., 2011. "Economic Institutions and Stability : A Network Approach," Discussion Paper 2011-084, Tilburg University, Center for Economic Research.
    4. Gilles, R.P. & Lazarova, E.A. & Ruys, P.H.M., 2011. "Economic Institutions and Stability : A Network Approach," Other publications TiSEM a3203e25-2d8b-414b-8ae3-3, Tilburg University, School of Economics and Management.

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    More about this item

    Keywords

    networks; stability; social division of labor; specialization;
    All these keywords.

    JEL classification:

    • C62 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Existence and Stability Conditions of Equilibrium
    • D - Microeconomics
    • E1 - Macroeconomics and Monetary Economics - - General Aggregative Models
    • F - International Economics
    • F11 - International Economics - - Trade - - - Neoclassical Models of Trade
    • F12 - International Economics - - Trade - - - Models of Trade with Imperfect Competition and Scale Economies; Fragmentation
    • F16 - International Economics - - Trade - - - Trade and Labor Market Interactions
    • J2 - Labor and Demographic Economics - - Demand and Supply of Labor
    • J3 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs
    • L - Industrial Organization
    • O - Economic Development, Innovation, Technological Change, and Growth

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