ABSTRACT
A fundamental social capital paradigm hypothesis is: social capital investments require the exchange of Socio-emotional goods (SEGs). One of the ironies of the social capital paradigm is that it provides a powerful defense of market institutions. Physical goods and services exchanged voluntarily in a market setting frequently have SEGs attached to them, so that the market exchanges often result in increased social capital. SEGs are human expressions that validate, express caring, or provide personalized information. SEGs have value because they satisfy universal socio-emotional needs for self-awareness, self-regard, and information. SEGs can be subdivided into at least three categories: those that validate; those that communicate information; and those that express caring. Information that describes shared kernels is valued because it establishes the basis for building ones social capital and generating SEGs. Altering the proportion of SEGs included in an exchange will alter the terms of trade measured in monetary units.
