---
entity_slug: market_driven_division
evaluator: null
evaluated_at: '2026-02-23T05:45:03.189139'
overall_score: 4.6
scores:
- name: definition_precision
  value: 4.0
  max_value: 5.0
  rationale: The definition clearly captures a specific causal mechanism where market
    characteristics (size, demand, exchange costs) determine specialization patterns.
    It avoids circularity and distinguishes this from other forms of division of labor.
- name: source_grounding
  value: 5.0
  max_value: 5.0
  rationale: This entity directly reflects Smith's explicit argument in Chapter 3
    that "the division of labour is limited by the extent of the market" and his emphasis
    on exchange as the foundation for specialization. The concept is central to Smith's
    theoretical framework.
- name: domain_placement
  value: 5.0
  max_value: 5.0
  rationale: '"Production" is the correct domain since this concept explains how productive
    activities organize themselves in response to market conditions. It sits at the
    intersection of production organization and market dynamics.'
- name: vsm_relevance
  value: 4.0
  max_value: 5.0
  rationale: This maps well to S4 (intelligence/environmental adaptation) as it describes
    how production systems adapt their internal structure based on environmental market
    signals. It also has S1 relevance as it affects how primary operations are organized.
- name: explanatory_value
  value: 5.0
  max_value: 5.0
  rationale: "This entity illuminates a fundamental structural mechanism in economic\
    \ organization\u2014how market forces shape productive specialization. It explains\
    \ the dynamic relationship between external conditions and internal organizational\
    \ patterns, providing genuine analytical insight."
---

# Evaluation: Market Driven Division

## definition_precision — 4.0 / 5.0

The definition clearly captures a specific causal mechanism where market characteristics (size, demand, exchange costs) determine specialization patterns. It avoids circularity and distinguishes this from other forms of division of labor.

## source_grounding — 5.0 / 5.0

This entity directly reflects Smith's explicit argument in Chapter 3 that "the division of labour is limited by the extent of the market" and his emphasis on exchange as the foundation for specialization. The concept is central to Smith's theoretical framework.

## domain_placement — 5.0 / 5.0

"Production" is the correct domain since this concept explains how productive activities organize themselves in response to market conditions. It sits at the intersection of production organization and market dynamics.

## vsm_relevance — 4.0 / 5.0

This maps well to S4 (intelligence/environmental adaptation) as it describes how production systems adapt their internal structure based on environmental market signals. It also has S1 relevance as it affects how primary operations are organized.

## explanatory_value — 5.0 / 5.0

This entity illuminates a fundamental structural mechanism in economic organization—how market forces shape productive specialization. It explains the dynamic relationship between external conditions and internal organizational patterns, providing genuine analytical insight.
