Some economic anthropologists draw heavily on the study of economics. Often called "formalists," this group interprets human behavior as a series of economic transactions. According to this model, humans attempt to use the limited resources at their disposal to fulfill their needs, not only for food and shelter but also for happiness and social status. Doing so is called "maximizing utility." Some anthropologists have criticized formalists for applying one model to cultures that act very differently.
Some anthropologists do not believe that Western models of "rational" economics can be applied to all societies. This school of thought, often called "substantivist," draws from the work of economic historian Karl Polanyi. Polanyi argued that rather than assuming a single model of economic behavior, anthropologists should study how people in different societies interact with their environments in order to meet their needs. Some societies, for instance, function by gift exchange or religious distribution rather than by markets.
Anthropologist Stephen Gudeman, among others, has argued against both formalist and substantivist models. Gudeman's "culturalist" position holds that societies have their own ways of understanding economic exchange, and that anthropologists must examine not only how societies engage with their environment to meet their needs, but also how they conceptualize that behavior. Culturalism argues that people's own perceptions of their lives must be understood, rather than imposing external models of economic activity on them.
Economic anthropology faces new challenges in the twenty-first century. The debate over whether a single set of economic models can be applied to all societies pertains to questions facing modern cultures. The pace of globalization means that societies all around the world are undergoing dramatic economic changes that affect their way of life. Economic anthropologists can apply their knowledge to help understand and manage these transitions. With lively debates and a growing recognition of the field's importance, there's never been a more exciting time to study economic anthropology.