conventionswealth

Conventionswealth is a theoretical concept in economics and sociology that describes how social conventions, norms, and expectations shape wealth creation, accumulation, and distribution. It treats wealth not only as a function of capital and market forces but also as the product of informal institutions and shared understandings that govern economic behavior.

The term is used in interdisciplinary discussions of informal institutions, trust networks, and social capital, arguing that wealth patterns emerge from cooperative behavior and reputational dynamics as much as from formal policy.

Origins: The idea has appeared in contemporary debates on wealth inequality and development, without a single inventor, gaining traction in scholarly and policy discussions since the early 2000s.

Mechanisms: Conventions reduce transaction costs, facilitate credit and contract enforcement through reputational capital, and influence investment decisions and savings by shaping risk perceptions.

Implications and critiques: Proponents argue that including conventions in wealth analysis offers a more holistic measure of opportunity and resilience; critics warn about measurement difficulties and the potential to normalize harmful norms or justify unequal outcomes.

See also: Social capital, Cultural economics, Trust in economics, Informal economy.