My piece from today’s Fin ReView section at John Quiggin

    One of the most important general differences relates to rationality and reciprocity. In a non-market context, careful calculation of costs and benefits and an insistence on exact reciprocity is generally deprecated. By contrast, in market contexts, the first rule is never to give more than you get.

    This rule applies in market contexts but not in social contexts, where such careful calculation is, as Benkler notes, generally deprecated, because markets create opportunities for systematic arbitrage that do not apply in other contexts. In an environment where exchanges are not carefully calculated, a trader who consistently gives slightly short weight can amass substantial profits. If trading partners assume honourable behaviour, none will suffer enough to notice, but eventually arbitrageurs will drive out their less calculating trading partners.

    Similar points can be made about other motives. There are a whole range of sales tricks designed to exploit altruism, friendship, desire for self- expression and so on. Hence, to prosper, or even survive, in a market context, it is necessary to adopt a view that ‘business is business’, and to (consciously or otherwise) play a role that is quite distinct from what might be conceived as one’s ‘real self’. This is a prime example of what Goffman calls an obligatory role.

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