---
entity_slug: market_based_economic_structure
evaluator: null
evaluated_at: '2026-02-23T05:44:13.261968'
overall_score: 3.4
scores:
- name: definition_precision
  value: 3.0
  max_value: 5.0
  rationale: The definition captures a coherent concept about how economic activities
    organize based on market factors, but it's somewhat broad and could be more precise
    about what distinguishes this from general economic organization. The core idea
    of structure emerging from market access and transportation costs is clear but
    could benefit from sharper boundaries.
- name: source_grounding
  value: 4.0
  max_value: 5.0
  rationale: This entity is well-grounded in Smith's actual analysis in Book I, Chapter
    3, where he explicitly discusses how different geographical locations (coastal,
    river, inland) develop different economic structures based on market access. The
    examples given directly reflect Smith's observations about regional economic specialization
    patterns.
- name: domain_placement
  value: 4.0
  max_value: 5.0
  rationale: '"General Theory" is appropriate as this concept represents a foundational
    principle about how markets shape economic organization rather than a specific
    mechanism or policy application. It sits at the right level of abstraction for
    theoretical framework placement.'
- name: vsm_relevance
  value: 2.0
  max_value: 5.0
  rationale: This entity is too abstract and structural to map naturally to specific
    VSM systems - it describes the overall organizational pattern rather than operational,
    coordinative, or regulatory functions. It's more of a background condition that
    influences how VSM systems might be configured rather than being a VSM system
    itself.
- name: explanatory_value
  value: 4.0
  max_value: 5.0
  rationale: This entity provides genuine explanatory power by illuminating the mechanism
    through which geographical and market factors determine patterns of economic specialization
    and development. It helps explain why different regions develop different economic
    characteristics based on structural factors rather than just describing surface
    phenomena.
---

# Evaluation: Market Based Economic Structure

## definition_precision — 3.0 / 5.0

The definition captures a coherent concept about how economic activities organize based on market factors, but it's somewhat broad and could be more precise about what distinguishes this from general economic organization. The core idea of structure emerging from market access and transportation costs is clear but could benefit from sharper boundaries.

## source_grounding — 4.0 / 5.0

This entity is well-grounded in Smith's actual analysis in Book I, Chapter 3, where he explicitly discusses how different geographical locations (coastal, river, inland) develop different economic structures based on market access. The examples given directly reflect Smith's observations about regional economic specialization patterns.

## domain_placement — 4.0 / 5.0

"General Theory" is appropriate as this concept represents a foundational principle about how markets shape economic organization rather than a specific mechanism or policy application. It sits at the right level of abstraction for theoretical framework placement.

## vsm_relevance — 2.0 / 5.0

This entity is too abstract and structural to map naturally to specific VSM systems - it describes the overall organizational pattern rather than operational, coordinative, or regulatory functions. It's more of a background condition that influences how VSM systems might be configured rather than being a VSM system itself.

## explanatory_value — 4.0 / 5.0

This entity provides genuine explanatory power by illuminating the mechanism through which geographical and market factors determine patterns of economic specialization and development. It helps explain why different regions develop different economic characteristics based on structural factors rather than just describing surface phenomena.
