Markets and interaction

Harald Bathelt and Johannes Glückler

Chapter 3 in Concise Introduction to Relational Economic Geography, 2026, pp 30-42 from Edward Elgar Publishing

Abstract: A fundamental aspect of economic action and interaction is the exchange of resources, commodities and services within markets. According to economic theory, goods and services are exchanged in markets to satisfy demand. While much research in economics focuses on analyzing market transactions, in reality, production and exchange are often organized through other forms of coordination. Before turning to alternative forms of coordination in hierarchies, networks and projects, this chapter reviews the concept of the market and identifies limitations when compared to real-world practices. Building on a relational understanding of economic action and introducing social institutions, including trust and reputation, the chapter develops a comprehensive and realistic understanding of markets as institutionalized forms of governance of economic exchange.

Keywords: Equilibrium processes; Homo economicus; Homo reciprocans; Neoclassical market model; Reputation; Trust (search for similar items in EconPapers)
Date: 2026
ISBN: 9781802204971
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