The discipline of economics focuses on understanding how markets work in modern capitalist economies, specifically looking at aspects like price determination, the impact of investments, and factors influencing people to save or spend. Economists often treat the market as a distinct part of society that operates according to its own laws, thereby leaving out the larger social or political context in which markets operate.

In contrast, sociologists view markets as social institutions that are constructed in culturally specific ways. Rather than studying markets in isolation, sociologists attempt to develop an alternative way of studying economic institutions and processes within a larger social framework. They argue that markets are often controlled or organised by particular social groups or classes and have specific connections to other institutions, social processes, and structures.

Sociologists often express this view by stating that economies are socially embedded. This means that the market is comparable to other social institutions like caste, tribe, or family, rather than being a separate entity. For example, a weekly tribal haat is not just a place for trade but a social institution deeply connected to the community's social structure.

Furthermore, a sociological perspective emphasizes that the economy consists of relations between people. As Karl Marx argued, all economic systems are also social systems consisting of specific relations of production. Unlike the economic view that focuses on things circulating in the market, sociology highlights that the economy is made up of social relationships connected through the process of production.