ABSTRACT

This chapter first develops social transaction theory, explaining the ontology of society, culture and economy. Second, it examines the relationship between the general social theory and social structure. Finally, a thought experiment will be conducted that subjects the theory to an extreme situation. This experiment will only be an initial test of theory validity. Social transaction theory will be built upon a modified complex adaptive systems model. While an individual's past experience is a result of their past transactions, the self and mind that has emerged from those transactions are unique. Perhaps individuals adopted a new strategy such as dishonesty or defection from established norms. This new strategy was used in social transaction and the social contract was disrupted and reputations are changed. The community will develop a social contract that canonizes strategies and rules in a social order that deals with these possibilities in social and cultural emergence.