There are three main ways that goods and services are distributed in societies: reciprocity, redistribution, and market exchange. Reciprocity involves the direct exchange of goods between two parties, and can take several forms from generalized reciprocity between close kin to balanced reciprocity which calculates value and timing of repayment. Redistribution involves goods and services flowing to a central authority who then reallocates them in a different form. Market exchange involves many buyers and sellers exchanging goods through pricing mechanisms. How these systems of exchange are implemented depends on social and political factors within each society.

1. Economic Anthropology: Systems of Exchange Reciprocity, Redistribution, Market Transactions

2. Distribution: Exchange Relations Once produced, goods and services must be distributed Three ways by which goods are distributed Reciprocity: direct exchange of goods and services Redistribution: Flow of goods and services to central authority, then returned in different form Market exchange: buying and selling through price mechanism

3. Imperatives of Exchange: Background Marcel Mauss: The Gift Preface: “When two groups of men meet, they may move away or in case of mistrust they may resort to arms or else they may come to terms” Coming to terms, he called “total prestations” or an obligation that has the force of law in the absence of law

4. Obligations of the Gift Obligation to give To extend social ties to other person or groups Obligation to receive To accept the relationship Refusal is rejection of offered relationship Induces hostilities Obligation to repay Failure to repay renders one a beggar

5. Types of Reciprocity: Generalized The obligations underlie the principles of reciprocity Reciprocity: Direct exchange of goods and services Generalized reciprocity: altruistic transactions in which gifts are freely given without calculating value or repayment due Example: meat distribution among !Kung (upper left) Example: family pooling of resources, even birthday presents (lower left) Usually occurs among close kin

6. Types of Reciprocity: Balanced Balanced reciprocity: Direct exchange Value of gift is calculated Time of repayment is specified Selling surplus food (upper left) Kula ring, Trobriand Islands One trader gives partner a white armband (see map, lower left) Expects a red necklace of equal value in return Promissory gifts are made until return occurs Usually occurs among distant kin

7. Types of Reciprocity: Negative Negative reciprocity: An exchange where One party tries to get the better of the exchange from the other party. Example: hard bargaining or deception Example: horse raids (upper left) Example: selling prepared food to a captive market (lower left) Usually occurs among unrelated persons Variation: silent trade

8. Case Study: Big Man Complex Big men are headmen with a following Following created by doing a favor (e.g. lending pigs) Favor is difficult to repay Individually, exchange is reciprocity Collectively, has appearance of redistribution

9. Big Men’s Power: Limits Cannot enforce the obligations Subject to competition to other big men Exchange feasts every 10 years with another big man equal in status

10. Redistribution Process whereby goods and services Flow to a central authority (king, chief, government) Where they are sorted, counted, and Reallocated Classic example: Potlatch of Northwest Coast(see picture) Historical example: administered trade

11. Redistribution: Socialist Model Central feature of command economies Ethnographic example: Inca labor tax Here, men turn the soil with foot plows While the women break up the clods Modern examples: socialist countries Students from across Latin America at Cuban medical school

12. Market Exchange Exchange of goods among many buyers and sellers Directly, by barter, or Indirectly, by money and pricing Example: Yoruba market in Nigeria (upper left); Haitian market woman (lower left) Markets include Crowds of buyers and sellers Instant information on prices Freedom of market entry and exit

13. Market Exchange: Actors Actors are: Supplier, whose willingness to sell is directly proportional to price increases Purchaser, whose willingness to buy (demand) is directly proportional to price decreases Interaction lead to price equilibrium--no profit

14. Example: Regional Guatemalan Markets Case Study: San Francisco el Alto Entry: seller pay small tax; buyers pay none Many buyers and sellers Price is constant topic of conversation Profit is minimal Regional specialization guarantee buyers for product

15. Conclusion Economy entails distribution of goods and services Still, economy is embedded in society Big man complex involves politics Maintains power by persuasion, negotiation Kula ring is also embedded in prestige Interconnections will be seen in other topics: social groups and politics