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Purpose – A reevaluation of the theoretical underpinnings that have been used to interpret the prehispanic highland Mesoamerican economy, with a primary focus on the Classic and Postclassic periods in the Valley of Oaxaca.

Approach – Models of prehispanic Mesoamerican economies have long been derived from theoretical constructs broadly associated with Marx's Asiatic mode of production, specifically the writings of Wittfogel and Polanyi, which emphasized centralized control of irrigation and managed systems of production and distribution. Yet, for the Valley of Oaxaca, ethnographic data point to smaller-scale, more flexible systems of production, the importance of market exchange, and mechanisms for domestic cooperation. Drawing on residential excavation data from three Classic-period sites, systematic regional surveys, and other sources, the authors find that the data from the prehispanic era conform much more closely to the ethnographic findings than the long-standing theoretical constructs. New directions for modeling the prehispanic highland Mesoamerican economy are outlined.

Findings – The chapter's empirical focus is on the Classic-period domestic economy in the Valley of Oaxaca, where many households engaged in multicrafting and produced nonsubsistence goods for exchange. The archaeological data do not support the long-held view that most domestic units were self-sufficient.

Originality/value – The chapter draws on and synthesizes the theoretical implications from decades of field research by the authors. The findings provide a basis to question traditional perspectives on prehispanic Mesoamerican economies that have guided research for decades but no longer are supported by empirical findings.