Beyond Rational Choice and the Social Meaning of Economic Action: An Economic Sociology Perspective from Indonesia with a Focus on Papua
Keywords:
Economic Sociology, Indigenous Economy, Moral Economy, Rational ChoiceAbstract
This paper critically examines economic action beyond the rational choice paradigm by emphasizing the social meanings embedded in economic practices. Drawing on the perspective of economic sociology, the study argues that economic behavior cannot be fully understood through instrumental rationality alone, as it is deeply shaped by social relations, cultural values, moral norms, and institutional contexts. Using Indonesia, with a particular focus on Papua, as an empirical reference, this article highlights how indigenous and local economic practices are intertwined with kinship systems, customary law, reciprocity, and collective identity. The study adopts a qualitative and interpretive approach based on theoretical analysis and secondary data from sociological and ethnographic studies conducted in Indonesia and Melanesian contexts. The findings demonstrate that market activities in these settings function not only as mechanisms of exchange but also as social institutions that sustain social cohesion, moral order, and symbolic meaning. Market integration does not replace indigenous economic systems but produces hybrid economic forms in which rational calculation coexists with culturally embedded practices. This paper contributes to economic sociology by extending the embeddedness framework to non-Western and indigenous contexts. By foregrounding Indonesia and Papua, the study challenges the universal applicability of rational choice models and underscores the importance of culturally sensitive approaches in analyzing economic transformation and development processes.
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