Emergence of economic and social disparities through competitive gift-giving

Abstract

Several tiers of social organization with varying economic and social disparities have been observed. However, a quantitative characterization of the types and the causal mechanisms for the transitions have hardly been explained. While anthropologists have emphasized that gift exchange, rather than market exchange, prevails in traditional societies and shapes social relations, few mathematical studies have explored its consequences for social organizations. In this study, we present a simple model of competitive gift-giving that describes how gifts bring goods to the recipient and honor to the donor, and simulate social change. Numerical simulations and an analysis of the corresponding mean-field theory demonstrate the transitions between the following four phases with different distribution shapes of wealth and social reputation: the band, without economic or social disparities; the tribe, with economic but without social disparities; the chiefdom, with both; and the kingdom, with economic disparity and weak social disparity except for an outlier, namely, the “monarch”. The emergence of strong disparities is characterized by power law distributions and is attributed to the “rich get richer” process. In contrast, the absence of such a process leads to exponential distributions due to random fluctuations. The phases depend on the parameters characterizing the frequency and scale of gift interactions. Our findings provide quantitative criteria for classifying social organizations based on economic and social disparities, consistent with both anthropological theory and empirical observations. Thus, we propose empirically measurable explanatory variables and characteristic indices for the evolution of social organizations. The constructive model, guided by social scientific theory, can provide the basic mechanistic explanation of social evolution and integrate theories of the social sciences.