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Social Arrangements and Economic Behavior

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  • Andrew Postlewaite

Abstract

The social organization of society can have an important effect on the economic organization of that society. By this, we mean that there are not markets to mediate the determination of all things people legitimately care about from an economic point of view. This "incompleteness" of markets will typically lead to an indeterminacy in the social organization, that is, in who associates with whom, who marries whom, and so on. We discuss these points in detail and illustrate them with several formal models.

Suggested Citation

  • Andrew Postlewaite, 2001. "Social Arrangements and Economic Behavior," Annals of Economics and Statistics, GENES, issue 63-64, pages 67-87.
    • Handle: RePEc:adr:anecst:y:2001:i:63-64:p:67-87
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    File URL: http://www.jstor.org/stable/20076296
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    Cited by:

    1. David Croix, 2001. "Standard-of-Living Aspirations and Economic Cycles," International Economic Association Series, in: Jacques Drèze (ed.), Advances in Macroeconomic Theory, chapter 13, pages 255-282, Palgrave Macmillan.
    2. Mary A. Burke & Kislaya Prasad, 2005. "Contracts with social multipliers," Working Papers 05-17, Federal Reserve Bank of Boston.

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