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Wealth Creation in Primitive Economies

  • Robert P. GillesEmail author
Chapter

Abstract

In this chapter we consider two models of primitive economies made up of consumer-producers. Under autarky, consumer-producers in a state of self-sufficiency optimises their production to satisfy their own consumptive needs. This represents a situation similar to the position of peasants in an agricultural economy. Next, we look at economies in which autarkic consumer-producers have limited interactions to form a sparse trade infrastructure. These autarkic consumer-producers are assumed to interact through binary trade relationships only, forming trade infrastructures as network configurations of such binary trade relationships. We show that in these environments trade naturally leads to individually rational and socially optimal reallocations of the generated wealth, but there does not emerge a “general” equilibrium.

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Copyright information

© The Author(s) 2019

Authors and Affiliations

  1. 1.Management SchoolQueen’s University BelfastBelfastUK

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