---
entity_slug: exclusive_corporation
entity_type: Institution
vsm_system: S2
type_rationale: An exclusive corporation is a socially constructed rule system that
  governs trade through legally privileged membership restrictions and competition
  limitations.
vsm_rationale: Exclusive corporations primarily function as coordination mechanisms
  that distort natural price signals by artificially restricting market competition
  and enabling members to maintain higher prices than would prevail under free market
  conditions.
classified_at: '2026-02-23T11:05:16.132501'
---

# Classification: Exclusive Corporation

## Entity Type

Institution

## VSM System

S2

## Type Rationale

An exclusive corporation is a socially constructed rule system that governs trade through legally privileged membership restrictions and competition limitations.

## VSM Rationale

Exclusive corporations primarily function as coordination mechanisms that distort natural price signals by artificially restricting market competition and enabling members to maintain higher prices than would prevail under free market conditions.
