There is a long-standing debate about the relationship between market exchange, non-market exchange, and market-supporting institutions. Some intellectuals contend that markets reinforce certain conditions necessary to have a vibrant non-market exchange, while others argue that markets promote individualism and annihilate individuals in a way that displaces social ties and, thereby, non-market exchange. This paper shows that non-market and market exchange are complements, in the sense that both rise as the quality of market-supporting institutions improve, when the equilibrium payoff from market exchange rises with the quality of market-supporting institutions, the capital market is well developed, and the endowments is large enough so that individuals participate in both market and non-market exchange. Otherwise, they are substitutes.