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Economically speaking I would assume it stays mostly mercantilistic in Europe, and the rest of the world does whatever. The last institution is the enlightenment, not an economic one so I don't think they really touch on it. Victoria II is probably better for that. :D
If anything, they almost all use the communist way...
The nation or leader or whetever is the only one choosing what to build, where, when and it only benefits the nation, no private sector at all...nothing capitalist there.
Vicky 2 is one of the only game with private sectors differenciated from the nation and minding about their own business.
Really great game, a bit outdated, i really hope they make a Vicky 3.
Now, communist social organization is nothing new - anthropology seems to indicate that the default human distributive system is a gift economy - but precisely because it's simply our default economic mode, there's a difference between a modern thinker positing a society explicitly founded on a rejection of class hierarchy, and a primitve one that merely inherited communistic features, like the commons of the peasants, from its distant past.
Every instance of Communism/Socialism results in at least two classes of people. The workers and bureaucrats(managerial class). So in essence it is Plato's Republic
Well there's a reason its referred to as a plutocratic republican system, and the better form of oligarchy.
Dithmarschen, the only peasant republic in the game, was never de jure free, although it's overlords usually didn't care much about it. More importantly, however, it simply had a different ruling class - wealthy peasants intead of nobles - but was certainly not a "classless society". Also it was small as f*** ^^
EUs economical sphere is a heavily simplified state budget. There is no private economy, no question of ownership of capital, be it money, land or production tools, that goes beyond the concept of regional autonomy. Mercantilism btw is also just another number that has nothing to do with the real concept behind the term.
Considering politics, the situation can't be realy captured in terms of political theory, as the real ruler isn't the guy on the throne, but ultimatively the player behind the fourth wall. Therefore, it goes beyond even concepts of a single ruler like (pre-platonian) tyrannis, absolute monarchy, totalitarian dictatorship etc.
But even if we stick to ingame values and try to ignore the quasi-omnipotent presence of the player as much as we can, EU's countries are totalitarian regimes with a variety of different labels attached to them.
Vicky 2 is indeed better in that regard, although it mostly feigns complexity. There is not even a real system of supply and demand implemented. If you want that in a historical setting, go for business simulations like the Patrician series, Guild series or Port royal.
CK2: 769-1453
EU4: 1444-1821
V2: 1836-1936
HOI4: 1936-1948
V2 was also a 1940s rocket used by the Germans...