I don't know of much information about the inner workings of the elvish society fromwhich to get a decent idea of how things worked.
Here's what i'll set as premises and then suggest what seems to me the most likely answer, pure speculation mind you.
1. All Elves seemed to be very content with their life and the workings of their society. (Aside from the troubles of war and such)
2. The line of rule went from father to son, so it wasn't a democracy, atleast not at the top.
3. Ambition, the desire to move up the ladder of importance, seems to be virtually non-existant among the elves. I believe this because, especially with immortality, ambition among elves would likely throw the society into a neverending fray of stepping on one another to get to the top, putting the society into a tailspin.
I would expect all the elves to consider the land that they occupied to be shared equally, like one big happy family, with each member doing whatever was needed of them for the family to function best, one need not be unhappy or feel lowly for doing something that must be done, there is no more glory in building castles than there is farming, each must be done or things crumble
At first I thought a caste system was likely, but that may not be the right term, since it means that you are stuck where you are born, I think it more likely that the elves had some system of getting the right people into the right jobs according to their interests and abilities.
Pure speculation.
[ November 07, 2002: Message edited by: Mhoram ]
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