---
entity_slug: market_size_threshold
evaluator: null
evaluated_at: '2026-02-23T05:48:58.216722'
overall_score: 4.4
scores:
- name: definition_precision
  value: 4.0
  max_value: 5.0
  rationale: The definition clearly identifies a specific threshold concept - the
    minimum market size needed for full specialization - and distinguishes between
    partial and complete specialization. It's precise enough to be operationally meaningful,
    though it could be slightly more explicit about what constitutes "full" specialization.
- name: source_grounding
  value: 5.0
  max_value: 5.0
  rationale: This entity is directly grounded in Smith's explicit examples from Book
    I, Chapter 3, where he discusses how village markets are "too narrow" for porters
    and how market towns provide insufficient demand for constant occupation. The
    concept emerges naturally from Smith's own illustrations rather than being imposed
    from external frameworks.
- name: domain_placement
  value: 5.0
  max_value: 5.0
  rationale: The "Exchange" domain is perfectly appropriate since this concept fundamentally
    concerns how market mechanisms enable or constrain the division of labor. It sits
    at the intersection of market structure and specialization, which is central to
    exchange relationships.
- name: vsm_relevance
  value: 3.0
  max_value: 5.0
  rationale: This entity has moderate VSM relevance, primarily connecting to S1 (operational
    viability of specialized units) and S4 (environmental sensing of market conditions).
    However, it's more of a structural constraint than an active system component,
    making it somewhat VSM-neutral.
- name: explanatory_value
  value: 5.0
  max_value: 5.0
  rationale: This entity provides excellent explanatory power by identifying a key
    mechanism that determines when specialization becomes economically viable. It
    helps explain the structural relationship between market scale and the division
    of labor, illuminating why certain economic arrangements emerge in different contexts.
---

# Evaluation: Market Size Threshold

## definition_precision — 4.0 / 5.0

The definition clearly identifies a specific threshold concept - the minimum market size needed for full specialization - and distinguishes between partial and complete specialization. It's precise enough to be operationally meaningful, though it could be slightly more explicit about what constitutes "full" specialization.

## source_grounding — 5.0 / 5.0

This entity is directly grounded in Smith's explicit examples from Book I, Chapter 3, where he discusses how village markets are "too narrow" for porters and how market towns provide insufficient demand for constant occupation. The concept emerges naturally from Smith's own illustrations rather than being imposed from external frameworks.

## domain_placement — 5.0 / 5.0

The "Exchange" domain is perfectly appropriate since this concept fundamentally concerns how market mechanisms enable or constrain the division of labor. It sits at the intersection of market structure and specialization, which is central to exchange relationships.

## vsm_relevance — 3.0 / 5.0

This entity has moderate VSM relevance, primarily connecting to S1 (operational viability of specialized units) and S4 (environmental sensing of market conditions). However, it's more of a structural constraint than an active system component, making it somewhat VSM-neutral.

## explanatory_value — 5.0 / 5.0

This entity provides excellent explanatory power by identifying a key mechanism that determines when specialization becomes economically viable. It helps explain the structural relationship between market scale and the division of labor, illuminating why certain economic arrangements emerge in different contexts.
