Chapter 3
Market Structure in Relation-Based Societies
Salient Features of Relation-Based Market Structure
In general, the market structure in a relation-based society is different from that of a rule-based society. In this chapter, we will discuss some main features of the market structure in relation-based societies and contrast them with those in rule-based societies.
Government and Business
The role of the government in a relation-based society can be summarized as very powerful. As we discussed in the introduction, the fundamental reason why people and businesses try to avoid formal rules and rely on private relationships to conduct business and protect their interest is that the formal rules tend to be opaque and unfair, and the state ...
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