Homogenous Social Groups

Abstract

"In this paper, I tentatively analyze the impact of Homogeneity of groups on both the structures and relationships in which transactions take place. More specifically, the concept of homogeneity contains a set of conditions which describe properties of institutional relationships which reduce the cost of transactions among group members. The purpose of this paper is to introduce the concept of homogeneity so as to give a coherent economic interpretation to apparently contradictory phenomena such as the evolution of a legal system and the emergence of mafia-type organization."