Economics and Social Interaction

Introduction

We would like to explore some consequences of a very simple idea. If one analyses interpersonal relations in the economic domain, sooner or later one encounters power, authority, hierarchy and domination – i.e. what may be called the ‘vertical’ dimension of human relationships, as opposed to the ‘horizontal’ one. Violence, conflicts and relations of strength certainly exist in interpersonal relations, but too often economists tend to forget or bypass this aspect.

In fact, if we admit the existence of ‘vertical relations’, it is difficult to view interpersonal relations as always ‘positive’ for individuals – at least, for both parties in a ‘face-to-face’ relation – as too often happens in the economic analysis of this subject. This optimistic vision of interpersonal relations clearly appears, for example, in Gui's introduction to the recent special issue of Annals of Public and Cooperative Economics devoted to the topic, although he does admit that ‘the expression “relational”… does not necessarily mean nice, pleasant, or positive. Indeed, there also exists a “dark side” of relations… and “negative interpersonal exchanges” (Gui, 2000b, p. 143). If we are convinced of the relevance of vertical relations, beside or above horizontal ones, and of the importance of power, conflicts and relations of strength in vertical relations, it becomes difficult to neglect this ‘dark side’.