---
entity_slug: corporation_privileges_and_market_prices
entity_type: Institution
vsm_system: S2
type_rationale: The entity describes "exclusive privileges granted to corporations
  and similar regulations," which constitute a socially constructed rule system designed
  to govern economic activity and competition.
vsm_rationale: The entity's primary function is to interfere with the natural market
  mechanisms by keeping market prices and wages above their natural rates, thereby
  distorting the price signals essential for S2's coordination function.
classified_at: '2026-02-23T10:35:52.820183'
---

# Classification: Corporation Privileges And Market Prices

## Entity Type

Institution

## VSM System

S2

## Type Rationale

The entity describes "exclusive privileges granted to corporations and similar regulations," which constitute a socially constructed rule system designed to govern economic activity and competition.

## VSM Rationale

The entity's primary function is to interfere with the natural market mechanisms by keeping market prices and wages above their natural rates, thereby distorting the price signals essential for S2's coordination function.
