---
entity_slug: corporation_privileges_and_market_prices
evaluator: null
evaluated_at: '2026-02-23T05:03:33.600846'
overall_score: 4.4
scores:
- name: definition_precision
  value: 4.0
  max_value: 5.0
  rationale: The definition clearly identifies corporation privileges as exclusive
    rights that restrict competition and function like monopolies to elevate prices
    above natural levels. While it could be more specific about what constitutes "corporation
    privileges," it captures a distinct regulatory mechanism with clear economic effects.
- name: source_grounding
  value: 5.0
  max_value: 5.0
  rationale: This entity is directly grounded in Smith's text from Book I, Chapter
    7, with accurate quotations describing these privileges as "enlarged monopolies"
    that maintain prices above natural rates. The concept reflects Smith's actual
    analysis of how corporate exclusivity distorts market mechanisms.
- name: domain_placement
  value: 5.0
  max_value: 5.0
  rationale: The "Regulation" domain assignment is precisely correct, as this entity
    describes government-granted exclusive privileges that regulate market entry and
    competition. This is a quintessential example of regulatory intervention in market
    processes.
- name: vsm_relevance
  value: 3.0
  max_value: 5.0
  rationale: This entity maps reasonably well to S3 (internal regulation) as it represents
    regulatory mechanisms that control market behavior, though it also has S4 elements
    in how it affects environmental adaptation. However, it's primarily a regulatory
    constraint rather than a core VSM operational component.
- name: explanatory_value
  value: 5.0
  max_value: 5.0
  rationale: This entity provides significant explanatory power by illuminating the
    structural mechanism through which government-granted privileges create market
    distortions similar to monopolies. It reveals how regulatory frameworks can systematically
    elevate prices above competitive levels, which is crucial for understanding market
    dynamics.
---

# Evaluation: Corporation Privileges And Market Prices

## definition_precision — 4.0 / 5.0

The definition clearly identifies corporation privileges as exclusive rights that restrict competition and function like monopolies to elevate prices above natural levels. While it could be more specific about what constitutes "corporation privileges," it captures a distinct regulatory mechanism with clear economic effects.

## source_grounding — 5.0 / 5.0

This entity is directly grounded in Smith's text from Book I, Chapter 7, with accurate quotations describing these privileges as "enlarged monopolies" that maintain prices above natural rates. The concept reflects Smith's actual analysis of how corporate exclusivity distorts market mechanisms.

## domain_placement — 5.0 / 5.0

The "Regulation" domain assignment is precisely correct, as this entity describes government-granted exclusive privileges that regulate market entry and competition. This is a quintessential example of regulatory intervention in market processes.

## vsm_relevance — 3.0 / 5.0

This entity maps reasonably well to S3 (internal regulation) as it represents regulatory mechanisms that control market behavior, though it also has S4 elements in how it affects environmental adaptation. However, it's primarily a regulatory constraint rather than a core VSM operational component.

## explanatory_value — 5.0 / 5.0

This entity provides significant explanatory power by illuminating the structural mechanism through which government-granted privileges create market distortions similar to monopolies. It reveals how regulatory frameworks can systematically elevate prices above competitive levels, which is crucial for understanding market dynamics.
