In conventional economic theory, markets are evaluated by efficiency, competition, and pricing signals. However, RZE emphasizes that market functionality also depends on the relational architecture embedded within and around market participants.
These zones allow us to identify where a market lies not just on an efficiency curve, but on a relational integrity curve, enabling intervention before market collapse or social backlash.
Descriptive Analysis of Table 1: Market Dynamics and Relational Zones
Table 1 introduces a new typology for analyzing markets not merely by structure or pricing mechanisms, but by relational dynamics---the underlying quality of interactions between economic agents. This framework moves beyond classical assumptions of rational behavior and utility maximization to explore how trust, ambiguity, cooperation, and betrayal shape market behaviors in real-world settings.
White Zone (Neutral Transactions)
Markets in the White Zone are characterized by minimal relational entanglement. Transactions are largely anonymous, short-term, and standardized, often guided by price alone. There is no expectation of future interaction, reputational concern, or embedded norms. Examples include commodity spot markets or peer-to-peer trading platforms without rating systems. These are the default assumption in neoclassical economic models but represent only a fraction of actual economic life.
Green Zone (Relational Cooperation)
Green Zone markets reflect long-term, trust-based, and mutually reinforcing relationships. These involve repeated interactions where positive relational surplus is generated---often exceeding contractual obligations. Examples include collaborative supply chains, regional trade networks, and cooperative platforms. Markets in this zone benefit from relational capital, which reduces transaction costs and increases innovation and resilience. Green markets challenge the notion that efficiency must come at the cost of trust and community.
Yellow Zone (Strategic Ambiguity)
The Yellow Zone captures markets operating under intentional ambiguity, incomplete information, or veiled strategic intentions. Agents may withhold crucial information or delay truth-revealing actions for strategic gain. This zone often hosts speculative behaviors, as seen in overvalued IPOs, housing bubbles, or emerging digital asset markets. Such zones are fertile for both innovation and manipulation, and their stability often hinges on perception management rather than intrinsic value.
Red Zone (Open Conflict)
