Economic Interactions Research Articles

The Politics of Platform Technologies: A Critical Conceptualization of the Platform and Sharing Economy

This paper offers a political analysis of the platform and sharing economy—an economic model in which digital platforms facilitate social and economic interactions. Its two central models, mainstream and cooperative platforms, offer similar applications and services (e.g., home-sharing, food delivery), but fundamentally differ in their ownership and governance structures, economic models, and technical designs. Building on literature from the politics of technology (PoT), the paper develops an approach for the political analysis of platform technologies, combining central components from the works of Winner, Feenberg, and Pfaffenberger. This approach is then applied to analyze the platform and sharing economy, highlighting the political significance of platform technologies. The analysis reveals three key insights. First, when incorporated into particular social arrangements, digital platforms become means for shaping social realities rather than mere tools for specific uses. Second, mainstream platforms perpetuate capitalist conditions in the digital sphere and therefore necessitate platform capitalism to function, whereas cooperative platforms resist and undermine it. Third, the dynamics between the platform models embody a struggle over the question of the good life in the digital economy. Additionally, the paper uncovers a philosophical weakness in Winner’s definition of “inherently political technologies” that warrants further attention in PoT literature.

Estimation of the Water Footprint of Wood Construction in Chile Using a Streamlined Input–Output-Based Model

Wood construction is often proposed to reduce the construction sector’s greenhouse gas emissions due to its carbon sequestration potential. However, forestry significantly impacts natural water flows and increases water use—a critical concern in Chile. This study evaluates the water footprint of wood construction in Chile, considering direct and indirect water consumption under various scenarios. An input–output model was developed to quantify economic interactions, incorporating a new wood-construction sector based on data from a model house. An environmental extension matrix was also created to account for blue water (groundwater and surface water extraction) and green water (rainwater absorbed from soil) consumption. Future scenarios for the residential building sector were defined based on different growth rates for wood-based construction and current construction methods, and the model was resolved using the scenarios as demand vectors. The results indicate that wood construction’s water footprint is 2.38–2.47 times higher than conventional construction methods, with over 64% linked to forestry’s green water demand. By 2050, increased wood construction could raise the sector’s total water footprint by 30.0–31.8%. These findings underscore the need to assess water consumption as a critical sustainability parameter for wood construction and highlight the value of tools like the water footprint to guide decision-making.

The Sacred Negotiation: Monastic Response to Non-Christian Communities in Late Antique Gaza

This paper examines the pastoral and administrative methodologies of two prominent Late Antique monastic figures, Barsanuphius and John of Gaza, analyzing their engagement with non-Christians and their stance on conversion within the context of Late Antique Roman legislation. It addresses a gap in scholarships regarding the role of monastic figures in the Christianization of the late Roman world. The analysis reveals that the Gaza monks, while adhering to Christian orthodoxy, developed sophisticated strategies for navigating the religious diversity of their communities that were affected by imperial laws that sought to convert non-Christians and punish apostasy. The monks allowed economic interactions with non-Christians but advised against participating in pagan festivals and engaging with heretics. Unlike the mass conversions reported in other regions, the Gaza monks prioritized individualized instruction and spiritual preparation before baptism, advocating for genuine conversions rather than forced ones. Their approach stood in contrast to the harsh legal measures outlined in the Theodosian and Justinian Codes, suggesting a more nuanced and merciful stance toward non-Christians. The study argues that the Gaza monks served as intermediaries between imperial policies and local practices, suggesting the diverse methods and levels of monastic responses toward non-Christians in Late Antique Palestine.

MOVIMENTOS SOCIAIS DIGITAIS E DESIGUALDADES NA SOCIEDADE EM REDE

This work aims to analyze the social transformations occurring in the digital age, with an emphasis on new forms of inequality and the role of digital social movements in the context of globalization and neoliberalism. Initially, it addresses the transition to the network society, based on Manuel Castells’ theories, exploring how digital technologies reconfigure social, economic, and cultural interactions. Next, it discusses the concept of digital inequalities and social exclusion, drawing on studies by Jan van Dijk and Mark Warschauer, highlighting how unequal access to information technologies reinforces existing social inequalities. The research also investigates the emergence of digital social movements and networked activism, analyzing their dynamics and strategies in light of contributions from Zeynep Tufekci and Manuel Castells. Emblematic cases such as the #MeToo movement and Black Lives Matter are examined, evidencing the impact of digital technologies on social mobilization and the promotion of change. Finally, it discusses the impact of neoliberalism and globalization on contemporary social structures, including the precariousness of work and recent economic crises, grounding the discussion in the theories of David Harvey and Saskia Sassen. The methodology adopted is qualitative in nature, based on a critical literature review of the main sociological theories related to the theme. The results point to the need to understand the complexity of social dynamics in the digital age and recognize the importance of digital social movements in combating new forms of inequality. It is concluded that sociology plays a fundamental role in analyzing and understanding contemporary social phenomena, contributing to the construction of a more just and inclusive society in the era of globalization and digital technologies.

Income inequality in Mexico, 1895-1940: industrialisation, revolution, institutions

Abstract This paper, building on new archival research and the social table method, presents comprehensive estimates of income inequality in Mexico in 1895, 1910, 1930 and 1940. Inequality grew from 1895 to 1910, driven by economic expansion within the context of an oligarchic economy. While real income increased for the lower classes during this period, the main beneficiaries were large landowners and entrepreneurs. In the revolutionary period from 1910 to 1930 inequality decreased especially as a result of land reforms, benefitting peasants at the expense of the large landowners. However, the economic structure of the country was not fundamentally changed, and in the 1930s inequality raised as incomes of peasants and those in the informal sector fell behind manufacturing and other high-earning sectors. The Mexican case shows the complex interaction of economics, demography and politics in determining economic inequality.

Beachrock as a Natural Coastal Resource in Antiquity: Evidence from Southern Israel

Beachrock is a sedimentary rock that forms rapidly through the cementation of beach-associated clasts by calcium carbonate within the intertidal zone. On the southern coast of Israel, Holocene beachrock exposures typically appear as linear, shore-parallel platforms that dip seawards. In the archeological record, beachrock was exploited as a natural resource for various purposes, including the production of querns, millstones, basins, building stones, and other architectural elements. At Tel Yavne, a site continuously settled from the Chalcolithic period to the present day, excavations in the eastern and southern fringes revealed an extensive industrial compound dating to the Byzantine and early Islamic periods. This compound underscores the settlement’s economic and industrial prominence during those eras. Numerous beachrock artifacts were uncovered, and this study examines their practical applications while characterizing their composition and microstructure. This research highlights the role of beachrock as a key resource, providing insights into inland–coastal economic interactions in antiquity and broadening our understanding of its use within the socio-economic landscape of the region.

Exploring Afghanistan's Prospective Role in the Shanghai Cooperation Organization

This article analyzes the prospects of Afghanistan's presence in the Shanghai Cooperation Organization. Given the increasing importance of this organization in regional and global dynamics, Afghanistan's effective involvement could play a key role in shaping regional economic, security, and political interactions. This research employs qualitative methods and the Delphi strategy to gather and analyze the views of experts and specialists in international politics, regional security, and economics. Data analysis was conducted using the grounded theory method in NVivo software, and the results, based on the Kendall formula, indicate a consensus among experts regarding the significance and challenges of Afghanistan's participation. The research findings suggest that Afghanistan, due to its geostrategic position, rich natural resources, and potential capacities, can serve as a bridge between Central, South, and West Asian countries, thereby strengthening economic and security cooperation within the framework of the Shanghai Cooperation Organization. However, challenges such as internal instability, economic dependency, and geopolitical pressures from foreign powers pose serious obstacles to Afghanistan's active participation in the organization. According to content analysis, there is a consensus among experts that the Shanghai Cooperation Organization, if it enhances its support mechanisms, can provide a suitable platform for bolstering stability and development in Afghanistan. This endeavor requires multilateral cooperation and sustained support from the key members of the organization. The findings of this research can significantly assist policymakers and decision-makers in formulating effective strategies to enhance Afghanistan's role in this organization.

Trading with Adversaries: Russia-Europe Economic Relations Amid the Ukraine Conflict

Trade remains a fundamental component of a country’s economic activities, even amidst the turmoil of war. This paper examines the impact of conflict on trade, particularly focusing on the dynamics between former trading partners who become belligerents. This research applies four International Relations frameworks—Relative Gain, Third Party Consideration, Domestic Political Economy, and Types of Traded Products—to analyze the economic interactions between Russia and European countries during the Russia-Ukraine War that began in 2022. The war has not only altered the geopolitical landscape but also disrupted global trade networks, compelling countries to navigate a new international situation. The study finds that the Relative Gains framework most effectively explains the behavior of Russia and the EU, though it highlights the need for more precise criteria within this framework to predict trade disruptions. The paper also discusses the limitations of the other frameworks and suggests that future research should focus on developing quantifiable measures to better understand and predict economic relations during wartime.

Waging warfare against states: the deployment of artificial intelligence in cyber espionage

AbstractCyber espionage has significantly been viewed as a risk towards nation-states, especially in the area of security and protection of Critical National Infrastructures. The race against digitisation has also raised concerns about how emerging technologies are defining how cyber activities are linked to waging warfare between States. Real-world crimes have since found a place in cyberspace, and with high connectivity, has exposed various actors to various risks and vulnerabilities, including cyber espionage. Cyber espionage has always been a national security issue as it does not only target States but also affects public–private networks, corporations and individuals. The challenge of crimes committed within the cyber realm is how the nature of cybercrimes distorts the dichotomy of state responsibility in responding to cyber threats and vulnerabilities. Furthermore, the veil of anonymity and emerging technologies such as artificial intelligence have further provided opportunities for a larger scale impact on the state for such crime. The imminent threat of cyber espionage is impacting the economic and political interactions between nation-states and changing the nature of modern conflict. Due to these implications, this paper will discuss the current legal landscape governing cyber espionage and the impact of the use of artificial intelligence in the commission of such crimes.

Russian Foreign Policy Orientation Under Putin in Relation to Pakistan and Its Implications on India

This research explores the orientation of Russia's foreign policy under President Vladimir Putin, focusing specifically on its evolving relationship with Pakistan and the implications this has for India. Historically, Russia has maintained close ties with India, while Pakistan has leaned toward alliances with the United States and China. However, since the 2010s, there has been a perceptible shift in Russia-Pakistan relations, including increased defence cooperation and economic engagements, raising concerns in New Delhi. This paper examines the strategic factors driving Moscow's outreach to Pakistan, the implications for South Asian security dynamics, and how India is adjusting its foreign policy in response to these changes. The Russian Federation's foreign policy under Vladimir Putin has witnessed significant shifts in its orientation towards various global actors, particularly in South Asia. Russia's relations with Pakistan, historically marked by Cold War-era rivalries and limited engagements, have evolved considerably under Putin's leadership, raising important questions about its strategic calculations and the broader geopolitical ramifications. This paper examines the transformation in Russia-Pakistan relations under Putin, focusing on military, economic, and diplomatic interactions. It also explores how this evolving partnership affects India's strategic interests, given its historical ties with Russia and ongoing tensions with Pakistan. By analysing the underlying factors driving Russian foreign policy shifts, the paper sheds light on the complex triangular dynamics between Russia, Pakistan, and India, offering insights into the regional security architecture and future trends in South Asian geopolitics.

Methodological and Theoretical Approaches to the Study of Relationship Between Politics and Economics

The article is devoted to the consideration of methodological and theoretical approaches to the study of the relationship between politics and economics. It is shown that they can be classified according to two criteria. Firstly, according to the criterion of exogeneity and endogeneity. The exogenous approach assumes the consideration of politics as an external factor to the economic system. An example of such an approach is Marxist political economy, in which politics is considered as a superstructure over the socio-economic base, exerting a reverse influence on it. The endogenous approach studies political actors as direct participants in economic interaction. The economy is considered as a system of political and economic interrelations that are included in economic-theoretical models. The second criterion for applying approaches to studying the relationship between politics and economics determines the use of the provisions of methodological holism and methodological individualism. Behavior of economic and political actors is considered from the position of its determination by the social-economic system within the framework of the first approach. The focus is on the problem of choice made by economic and political actors operating within certain institutional constraints in methodological individualism. In contemporary conditions one may say about the formation of a subject field of new political economy characterized with the endogenization of the study of political-economic interaction. In traditional political-economic analysis based on the principles of methodological holism approaches are emerging in which politics is viewed as an endogenous element of the economic system. There is a transition from abstract holistic models to the analysis of the behavior of individual and group actors. On the other hand, neoclassical political economy has emerged, which moves from the economic theory of politics to a comprehensive study of the relationship between economics and politics. However, discrete structural analysis has the greatest comparative advantage in conducting endogenous economic theoretical research. It allows comparing competing real alternatives to the institutional organization of the relationship between politics and economics. This approach ensures the primacy of positive analysis over normative one moving away from the institutional nirvana characterizing many competing research approaches. Nirvana approach means that existing "imperfect" institutional arrangements are compared with the ideal norm

THE MODEL OF CHOOSING A CRM SYSTEM IN THE MANAGEMENT OF BUSINESS ROCESSES OF SMALL BUSINESSES

The article presents a model for choosing a CRM system for small and medium-sized enterprises (SMEs), which allows for effective business processes of interaction with clients. The authors came to the conclusion that in modern conditions, digitalization of SME activities is becoming one of the pressing issues.Active digitalization of business accelerates the process of transition of the economy to digital. The digital economy is based on information and communication technologies (ICT). Information technologies in the modern economy are used for the purpose of fast, high-quality and effective computer processing of information resources, their transmission over any distance in the shortest possible time. The authors argue that government support for business digitalization cannot and should not be the only stimulating factor for SMEs. In addition to external conditions, there are also internal motivating factors - these are the capabilities of the business environment. The authors of the article substantiate the idea that CRM systems allow optimizing the process of financial and economic interaction between a company and a buyer. Using the hierarchy analysis method, the key parameters for choosing a CRM system were determined. The final indicator of the CRM system selection allows choosing the optimal CRM system for the enterprise from alternative ones. The indicator is calculated based on the second-level indicators: the functionality of the CRM system, the program interface, the tariff scale.Each of these indicators is disclosed through the indicators of the 3rd level. The weights of the indicators of all levels were determined by experts through a pairwise comparison of the elements of each level on a nine-point scale. The criteria and their weight values proposed by the authors will allow SME sector entities to choose the optimal program depending on the requests and capabilities of the enterprise.

Hanseatic City-States as actors of Proto-Paradiplomacy: Cultural Integrators of Economics, Politics and Law

Stemming from the theory of paradiplomacy, the study investigates the topic of external contacts of quasi-states of the Hanseatic League as a special type of cultural and diplomatic activity. The relevance of this study is associated with the need for a more comprehensive description of the behavioral dynamics of such structures both today and in retrospect. The study attempts to identify the roots of the modern cultural phenomenon of paradiplomacy. To reach this goal it was necessary, firstly, to systematize modern theoretical approaches to paradiplomacy; secondly, to apply a theoretical framework to studying paradiplomacy on the example of the Hanseatic League; and thirdly, to find the correspondences and inconsistencies between this framework and the economic, political and legal practices of the Hanseatic League. The research materials are both theoretical works on paradiplomacy and historical documents concerning the activities of the Hanseatic League. It has been revealed that even though paradiplomacy is traditionally dated back to the globalization of the 1970s, some elements of paradiplomacy can be observed as early as in the Middle Ages. As a result of the study, it has been shown that external contacts of quasi-state formations of the Hanseatic League may be considered as prototypical paradiplomacy: the cities of the Hanseatic League were guided by the common Lübeck Law, which regulated, in particular, the external relations of the Hansa members and outlined the framework of proto-diplomatic cooperation; common economic interests pushed the Hanseatic cities to cooperate with the urban entities of Norway, England and Rus'. Based on the theory of the Canadian political scientist A. Lecourt, the authors conclude that all three levels of paradiplomatic activity were present in the Hansa. To substantiate the conclusion, it was proved that the first (economic) level is represented by actual economic interaction that underlay the existence of the Hanseatic League, as shown by the example of the connections between German cities and Novgorod. The second (cultural) level of paradiplomacy with cultural interaction as a strategy to increase the influence of city-states is represented by the so-called Hanseatic fairs. The third (political) level includes the provision by Lübeck of a fleet for the transport of the army of the Teutonic Order, land and sea military campaigns and the conclusion of the Stralsund Peace Treaty. The authors analyze the Hanseatic League office system in the context of the antennas theory of paradiplomatic interaction by J. Ciesielska-Kilkowska and T. Kamiński. At the same time, it demonstrates the limitations of the theoretical approaches used in relation to medieval city-states.

Evolution of India-Nepal Relations from 2014 to 2024

This article examines the bilateral relations between India and Nepal, which hold a unique status. On one hand, India perceives the mountainous nation not only as a culturally and civilizationally close neighbor but also as a vulnerable link in its security framework. On the other hand, Nepal endeavors to pursue a policy of balancing, striving to prevent the excessive strengthening of either neighbor’s influence within its borders. The study demonstrates that during the specified period, India has intensified its South Asian foreign policy under the “Neighborhood First” strategy. This has led to a significant increase in political contacts and a robust growth in economic interactions. However, it is revealed that frequent crises in relations, India's exertion of pressure, and the anti-Indian rhetoric of certain Nepali leaders have detrimental effects on the positive perception of bilateral ties within society. It is established that the Madhesi communities residing along the southern stretch of the India-Nepal border — most closely associated with India — are the most adversely affected by these dynamics. Furthermore, the article underscores the critical role of the Chinese factor in the evolution of bilateral relations, as China consistently strengthens its foothold in Nepal (and across South Asia). The analysis also illustrates how India responds to Beijing’s initiatives in the Himalayan state.

The Theory of Complexity and Sustainable Urban Development: A Systematic Literature Review

Urbanization is a rapidly accelerating global phenomenon that challenges sustainable development, requiring innovative frameworks for understanding and managing urban complexity. This study explores the application of Complexity Theory in sustainable urban development, framing cities as Complex Adaptive Systems (CAS), where dynamic social, economic, environmental, and technological interactions generate emergent behaviors. A systematic literature review was conducted, analyzing 91 studies retrieved from Scopus that explicitly link Complexity Theory to urban sustainability. Key findings reveal trade-offs, such as balancing economic growth with ecological preservation and social equity, while emphasizing the role of self-organization and adaptive governance in enhancing urban resilience. Concrete examples include the application of fractal analysis in urban planning to predict sprawl and optimize infrastructure and the use of system dynamics models to align smart city initiatives with United Nations Sustainable Development Goals. Wider co-benefits identified include improved public health through integrated green infrastructure and the reinforcement of social cohesion via participatory urban planning. This research concludes that embracing Complexity Theory enables a holistic approach to urban sustainability, fostering adaptable, resilient systems that can better manage uncertainty. This study highlights the need for interdisciplinary collaboration and innovative policy frameworks to navigate the multifaceted challenges of modern urbanization.

Religious Relations and Economics Hadith Perspective

This research explores the relationship between religion and economics from an Islamic perspective, focusing on the application of hadith teachings in shaping economic practices and policies. Through a qualitative approach and hermeneutical analysis of relevant hadiths, this research examines the principles of business ethics, prohibited economic practices, production, consumption, and distribution of wealth in Islam. Its findings highlight the emphasis on honesty, transparency, and social responsibility in economic interactions, as well as the prohibition of usury and fraudulent practices. These hadiths also encourage hard work, innovation, moderation in consumption, and prioritizing halal goods. In particular, the obligation of zakat and concern for the mustadhafins (marginalized groups) underline the importance of the redistribution of wealth and social welfare in the Islamic economy. This analysis reveals a strong relationship between religious teachings and economic behavior, with hadith principles influencing individual decisions and societal practices. Furthermore, this research discusses the implications of these teachings for modern economic policy, such as the development of Islamic financial institutions, the integration of zakat in the framework of social policy, and the promotion of business ethics. The relevance of hadith teachings in responding to economic challenges and promoting a more inclusive and sustainable approach was also highlighted. This research contributes to the understanding of the interaction between religion and economics, emphasizing the potential of Islamic principles in shaping a just and prosperous economic system.

Economic Cooperation Between the European Union and Brazil

The article is based on forecasts of international think tanks and on the studies made by foreign and Russian authors. The features of economic interaction between the European Union and Brazil are traced and characterized. Such issues as the “EU's ‒ Brazil“ strategic partnership, bilateral trade and investment cooperation, the importance of the climate agenda and the energy transition are examined. As well, the author tries to foresee possible development options for the cooperation between the EU and the South American Giant in the short and medium term. It was concluded that, in the new context of the world order, the European Union has to adapt to the strengthening position of the Global South in which Brazil will play the weighty role. The article shows that Brazil retains its role as a key link in European inter-regionalism and participates in three mechanisms of EU interaction with Latin America: interregional, subregional and bilateral. After a period of stagnation in strategic EU‒LAC partnership, in the third decade of the XXI century the European Union focused on Brazil as its main South American partner and intermediary on such issues as climate change and energy transition. The study aims to show, using the example of the EU and Brazil, the configuration of relations between the former and new centers of power in the modern context of the global world order, characteristics of which is uncertainty and increased competition in access to critical natural resources and technologies. The European Union, probably, will use the future ratification of the trade agreement with Mercosur as an element of pressure on Brazil to fulfill its environmental and climate obligations. Brazil, in turn, more likely, will focus on South-South cooperation without entering into confrontation with the EU, being interested in obtaining investments and advanced technologies.

Efficiency of public spending and welfare in Indonesia

Poverty is a major challenge caused by various situations as well as cultural, social, economic, and political interactions. Therefore, poverty alleviation programs and strategies require an integrated approach carried out in consistent and organized stages. It required the participation of all parties, both regional heads, Regional People’s Representative Assembly (RPRA) members, entrepreneurs, and other elements of society. This study aimed to investigate the effect of local spending efficiency on public welfare in Indonesia, using a quantitative and explanatory method. The analysis method used in this study is the panel data regression model. The research population in all provinces in Indonesia was 34 provinces, and a purposive sampling method was used, where a total of 26 provinces were selected. The research period is 2017–2021. The efficiency of local spending (education, health, and infrastructure) is estimated using the Stochastic Frontier Analysis (SFA) cost function approach. The results showed that the higher the efficiency of education spending, the more it will increase public welfare in Indonesia. Meanwhile, the health spending efficiency and the infrastructure spending efficiency do not affect public welfare. The implications of this study for the development of science are that the efficient allocation of education spending will be able to improve the quality of education which is a long-term solution to overcome poverty in Indonesia and for policymakers to be able to optimize education spending to achieve the expected educational goals.

Navigating Ecological–Economic Interactions: Spatiotemporal Dynamics and Drivers in the Lower Reaches of the Jinsha River

The lower reaches of the Jinsha River, serving as a vital ecological barrier in southwestern China and playing a crucial role in advancing targeted poverty alleviation efforts, remain underexplored in terms of the coupling between ecological and economic development, creating a gap in understanding the region’s sustainable development potential. This study combines the remote sensing ecological index (RSEI) derived from MODIS data and the biodiversity richness index (BRI) based on land use data to create the ecological environment index (EEI) using a weighted approach. It also develops the economic development index (EDI) from economic data using the entropy weight method. By integrating the EEI and EDI, the study calculates key metrics, including the ecological–economic coupling degree (EECD), coupling coordination degree (EECCD), and relative development degree (EERDD), and examines their spatiotemporal changes from 2000 to 2020. Additionally, the study applies a geographic detector model to identify the spatial drivers of the EEI, an obstacle factor diagnosis model to pinpoint the main barriers to EDI, and a neural network model to uncover the underlying forces shaping EECCD. The results indicate that: (I) From 2000 to 2020, the overall improvement rate of the ecological and economic subsystems was greater than that of the ecological–economic coupling system. The entire region is still in the Running-In Stage, and the coordination level has been upgraded from near imbalance to marginal coordination. About 85% of the counties’ EERDDs are still in the EDI Behind EEI Stage. (II) The structural composition of the EEI shows a pattern of low Dry Hot Valley Area and high in other areas, mainly driven by natural factors, although human activities had a notable impact on these interactions. (III) Originating from an impact model primarily driven by economic factors and supplemented by ecological factors, both EDI and EECCD exhibit a pattern of high in the south and low in the north, with improvements spreading northward from the urban area of Kunming. The development gradient differences between 24 poverty-stricken counties and 16 non-poverty-stricken counties have been reduced. (IV) For the six types of ecological–economic coupling development zones, it is essential to adopt localized approaches tailored to the differences in resource and environmental characteristics and development stages. Key efforts should focus on enhancing ecological protection and restoration, increasing financial support, implementing ecological compensation mechanisms, and promoting innovative models for sustainable development.

How Do Reputation Systems Affect Commitment and Social Cohesion in Economic Exchange?

With the rise of the platform economy, economic interaction increasingly takes place under the regime of online reputation systems, which reduce uncertainty by publicizing others’ past behavior. Uncertainty, however, is central to the development of stable and cohesive relationships. The fundamental concerns are that reputation systems render personal, stable relationships obsolete and erode social cohesion. Grounded in social exchange theory, we propose two mechanisms through which reputation systems reduce commitment and inhibit social cohesion. These hypotheses are tested in a lab experiment simulating economic exchange with and without reputation systems. Contrary to our theoretical expectations, we find that reputation systems slightly reduce interactions between strangers and do not inhibit the development of cohesive ties. Although reputation systems reduce the expressive value of cooperation, they offset this undesired effect by increasing cooperation. Alleviating concerns about the social ramifications of the platform economy, the relationship structure appears largely unaffected by the reputation system. We conclude that actors interpret acts of cooperation differently in the presence of a reputation system, and market participants develop relationships not for purely functional reasons but as emotion-based by-products of economic exchange.