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From friendly turns towards trade – on the interplay between cooperation and markets

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  • Stefan Mann

Abstract

Purpose - Many transactions are partly carried out within social networks and without payment, partly commercially on the market. The paper aims to explore the interdependencies between shrinking cooperation in society and a growing service sector. Design/methodology/approach - The author tries to categorize cooperation and to set it into relation to services carried out against payment. Examples are found where a clear switch from cooperation to the service sector have been taken place. Findings - The paper diagnoses a broad societal switch from socially driven cooperation to the market. Tour reps at holiday clubs, psychologists and nurses for the elderly are all rising professions and are used as cases in point. Utility theory sees such switches as a rise in GDP and therefore as something positive. From a happiness research perspective, however, switching from cooperation to markets will probably lead to declining social capital. Research limitations/implications - The overall impact to societal utility remains unclear. Originality/value - This is an example for a phenomenon where happiness research leads to very different results from welfare economics.

Suggested Citation

  • Stefan Mann, 2008. "From friendly turns towards trade – on the interplay between cooperation and markets," International Journal of Social Economics, Emerald Group Publishing Limited, vol. 35(5), pages 326-337, April.
    • Handle: RePEc:eme:ijsepp:v:35:y:2008:i:5:p:326-337
    DOI: 10.1108/03068290810861585
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    References listed on IDEAS

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    1. Bergstrom, Theodore C & Stark, Oded, 1993. "How Altruism Can Prevail in an Evolutionary Environment," American Economic Review, American Economic Association, vol. 83(2), pages 149-155, May.
    2. Kranton, Rachel E, 1996. "Reciprocal Exchange: A Self-Sustaining System," American Economic Review, American Economic Association, vol. 86(4), pages 830-851, September.
    3. S Cameron, 2006. "Determinants of the Demand for Live Entertainments: Some Survey-based Evidence," Economic Issues Journal Articles, Economic Issues, vol. 11(2), pages 51-64, September.
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    Cited by:

    1. Mann, Stefan & Wüstemann, Henry, 2012. "The fading scope of labour – remarks about the lost rationale of a common term," MPRA Paper 39401, University Library of Munich, Germany.
    2. Mann, Stefan, 2013. "“Work”? On utility in the market and in the unpaid sphere," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 45(C), pages 86-91.
    3. Stefan Mann & Henry Wüstemann, 2010. "Efficiency and utility: an evolutionary perspective," International Journal of Social Economics, Emerald Group Publishing Limited, vol. 37(9), pages 676-685, August.

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