Hierarchies as Forms of Interaction

This book offers a fresh and interdisciplinary exploration of hierarchy as a core form of human interaction. Hierarchy is widely regarded as a problem—associated with inequality, the abuse of power, and rigid organizational structures. Yet, despite persistent criticism, hierarchical systems remain fundamental to the functioning of modern societies. Why is this so? Moving beyond conventional critiques, it presents hierarchy not as inherently inferior to markets or cooperation, but as an essential organizational tool whose value depends on context. No single mode of interaction—hierarchy, markets, or cooperation—consistently outperforms the others. Drawing on insights from business, political science, sociology, psychology, religion, and biology, the author examines how hierarchical structures emerge and how they shape not only firms and states, but also our thinking and everyday social relations. The analysis disentangles the two components of hierarchies. One is status differences between individuals, and the other is the transaction cost-saving coordinative function of a hierarchical organization. Through a rich set of theoretical perspectives and empirical illustrations, the book shows that the status component has negative impacts for society, whereas its coordinative function is key for functioning organizations and societies. It is therefore shown when and how hierarchies can be designed to enable coordination without reinforcing harmful status distinctions. By re-evaluating one of the most contested concepts in social science, this book provides a nuanced framework for thinking about power, inequality, and institutional design. It will be of interest to scholars and practitioners in economics, political science, management, but also broader social sciences and biology.