There is a fixed pattern in economic development that is not well understood by the public. There are three main stages of development. I realize that we lose some conceptual accuracy by transferring concepts from one discipline to another, but when no readily recognized terms exist in one discipline, imports sometimes help. The oligarchic phase of an economy is where skilled craftsmen produce mainly for the rich. The market is narrow.
Competition is based on quality rather than price.
To maintain such a hierarchical, stratified economy, political compulsion is mandatory. A common feature of the medieval economy was the producers guild. Members of a guild cooperated politically with members of other guilds in cities to pass laws that restricted access to local consumers. A system of hierarchical apprenticeship and screening was established by each guild in order to restrict competition. The goal was to keep price competitive products away from consumers.