Which model of economics argues the importance of social structures in economic interactions?

The substantive economics model emphasizes the role of social structures and cultural factors in shaping economic interactions. Rather than focusing solely on formal market mechanisms and rational choice, this approach recognizes that economic activities are deeply embedded in social relationships and cultural contexts. It examines how societal norms, values, and institutions influence economic behavior and resource allocation, thus providing a more holistic understanding of economic life.

In this model, economies are not viewed merely as systems of production and exchange, but as complex social processes influenced by various social factors. This perspective allows for an analysis of how social power dynamics, historical contexts, and cultural practices affect economic outcomes, making social structures central to understanding economic interactions.

By focusing on these intricate relationships, substantive economics offers a critique of more conventional economic approaches that may overlook the influence of culture and social organization on economic behavior. This understanding is crucial for anthropologists and other social scientists seeking to comprehend the multifaceted nature of economies in different societies.