This was typical small village behavior in Nordics less than 100 years ago. When your survival depends on the village coming to your help when you are in trouble, you pay for it by giving up some freedoms. Social control is used to keep everyone in line.
Economic historians have noticed how egalitarian small village farming limited the innovation in agriculture. You could not adopt new crop or radical new technology easily unless everybody was on board even if everyone was farming their own piece of land (you need to come together for investments, risk sharing and emergency work). In contrast, independent big landowner changing something was just one man doing the decision.
What is the best socioeconomic system depends on the circumstances. For long term survival purposes conservative, cohesive and close willage/tribe and demand sharing/palace economy is probably the best.