Adam Smith's principle that the division of labor is limited by the extent of the market explains specialization: a small-town carpenter must be a generalist to fill his time, but in 18th-century London the same worker could specialize (e.g., become a cooper); larger markets and trade enable more specialization, including specialized aesthetics.

definitionpending

Speaker

Virginia Postrel

Evidence Quote

the division of labor is limited by the extent of the market. As the extent of the market grows you get more specialization

Source

Virginia Postrel on Style 11/27/2006EconTalk
Created: 6/17/2026, 10:31:39 AM

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