A satisfactory sociology of markets requires that both order and disorder in markets be addressed, yet sociologists have seemed more concerned with theorizing market stability and order. Change, however, is too fundamental a part of markets to receive so little sociological attention. One perspective that provides a fertile ground for moving ahead with developing an agenda for studying both stability and change in markets is American pragmatist social theory. This article therefore examines the influence of a pragmatist viewpoint on two (...) broad modern theoretical approaches that have implications for the sociology of markets, one focused on stabilization processes, the other on institutional designs for promoting change. Most particularly, it draws on work carried out from a pragmatist viewpoint and illustrates a pragmatic approach to change in markets using the case of the EU’s Forest, Law Enforcement, Governance and Trade (FLEGT) action plan and initiative. (shrink)

Much of our knowledge about the nineteenth-century natural history boom resides with the collectors themselves and their collections. We know much less about the conduct of the global trade that made collecting possible. That such a trade occurred in the face of significant obstacles of distance, variable prices, inadequate information, and diverse agents makes our knowledge deficit the more significant. William John Macleay, based in Sydney, built his significant natural history collection by trading locally as well as across the globe. (...) Our study of Macleay measures his complete set of trading transactions at a time of rapid expansion of his collection. It analyses how he chose between different forms of exchange and agreed fair value in order to complete long-distance specimen trading. (shrink)

One of the many claims about the value of local food is that local food exchanges generate trust between producers and consumers. To what degree is this actually the case and how does such trust develop? Drawing on interview and fieldwork data in one local food system in the Northeastern U.S., I show how local food participants build trust and reciprocity with one another in order to mitigate the challenges imposed by the conventional system. This trust and reciprocity builds primarily (...) through three mechanisms: reliable, positive relationships; demonstrations of good will toward one another; and a shared understanding of the value of locally-oriented food. Through these mechanisms, local food operators are able to build a healthy, stable local food system, able to better resist the pressures of the conventional system in which it must continually operate. (shrink)

This article shows how research on the social structure of markets may contribute to the analysis the growing income inequality in contemporary capitalist economies. The author proposes a theoretical link between embeddedness and social stratification by discussing the role of institutions and networks in markets for the distribution of economic profits between firms. The author claims that we must understand profit and free competition as opposites, as economic theory does. In the main part of the article the author illustrates six (...) typical mechanisms of rent extraction from networks or formal and symbolic rules that embed markets. They emerge from material as well as symbolical access to and influence on the orientation of other market actors. Social structures in markets lead to unequal chances for rent extraction, even if actors produce them for coordination rather than for accumulation purposes. This is how market sociology and theory of capitalism can be linked more closely. (shrink)

The harvesting of data about people, organizations, and things and their transformation into a form of capital is often described as a process of “accumulation by dispossession,” a pervasive loss of rights buttressed by predatory practices and legal violence. Yet this argument does not square well with the fact that enrollment into digital systems is often experienced as a much more benign process: signing up for a “free” service, responding to a “friend’s” invitation, or being encouraged to “share” content. In (...) this paper, we focus on the centrality of gifting and reciprocity to the business model and cultural imagination of digital capitalism. Relying on historical narratives and in-depth interviews with the designers and critics of digital systems, we explain the cultural genesis of these “give-to-get” relationships and analyze the socio-technical channels that structure them in practice. We suggest that the economic relation that develops as a result of a digital gift offering not only masks the structural asymmetry between giver and gifted but also permits the creation of the new commodity of personal data, obfuscates its true value, and naturalizes its private appropriation. We call this unique regime “accumulation by gift.”. (shrink)

This paper argues that the subsistence of the fundamental theorem of contemporary financial mathematics is the ethical concept ‘reciprocity’. The argument is based on identifying an equivalence between the contemporary, and ostensibly ‘value neutral’, Fundamental Theory of Asset Pricing with theories of mathematical probability that emerged in the seventeenth century in the context of the ethical assessment of commercial contracts in a framework of Aristotelian ethics. This observation, the main claim of the paper, is justified on the basis of results (...) from the Ultimatum Game and is analysed within a framework of Pragmatic philosophy. The analysis leads to the explanatory hypothesis that markets are centres of communicative action with reciprocity as a rule of discourse. The purpose of the paper is to reorientate financial economics to emphasise the objectives of cooperation and social cohesion and to this end, we offer specific policy advice. (shrink)

Jens Beckert’s 2009 article on the constitution and dynamics of markets is a bold attempt to define a novel research agenda. Deeming uncertainty and coordination essential for the constitution of social action in markets, Beckert proposes a framework centered on the resolution of three coordination problems: valuation, cooperation, and competition. The empirical study of these three coordination problems has the potential to contribute considerably to the sociological analysis of markets. However, the assertion that such a theoretical vantage point can explain (...) the constitution and dynamics of markets is not compelling because it (1) conflates social interaction with social structures, (2) fails to address power relations, institutions, and macro-level structures, and (3) neglects the historically contingent and socially contested nature of markets themselves. The present article shows that these three pitfalls are the result of starting from the problem of order and building upon uncertainty as the basis of action in markets, lending the suggested framework a methodologically individualist bent. Therefore, Beckert’s suggested framework is in danger of mystifying the very power relations, institutions, and macro-level structures that are at the heart of the constitution and dynamics of markets. (shrink)

This article draws on theoretical resources from economic sociology and sociology of law to intervene in economic debates about the relationship between intellectual property and industrialization. Utilizing historical evidence from the earliest period of American intellectual property law and from a formative company in the New England textile industry, I propose a social process of influence that connects intellectual property law to industrialization. I argue that, consistent with the findings of New Economic Sociology, social relationship structures and social capital are (...) the proximate influential force in industrialization. However, I also argue that transformative changes in those social relationship structures are rooted in the emergence of a particular type of political culture: what I call here, borrowing from Hannah Arendt and Frank Dobbin, a “Natal-Industrial Culture.” A Natal-Industrial Culture, as I propose it here, is a political culture in which collective hopes for the future are placed in new technologies and new cultural products, as means for achieving economic growth. Intellectual property law contributed to the emergence of this new type of political culture by holding out the promise of property, as a reward for the provision of new technologies or new cultural products. Because of the way that hope works on motivation—through cognitive pre-rehearsals of future attainment, which involve semantically-meaningful propositions and contribute to positive emotional experience—the promise of property provided a powerful stimulant to social capital formation. Working through the semantic resonances of property, intellectual property law contributed to a political culture in which invention and creativity were expected to secure a future of growth within the political community, both for particular members and for the political community, as a whole. By fostering a Natal-Industrial Culture, intellectual property law contributed to systematic invention and social capital-formation, leading, in turn, to the transformative changes in working and material provisioning that constitute industrialization. (shrink)

Political economy and economic sociology have developed in relative isolation from each other. While political economy focuses largely on macro phenomena, economic sociology focuses on the embeddedness of economic action. The article argues that economic sociology can provide a microfoundation for political economy beyond rational actor theory and behavioral economics. At the same time political economy offers a unifying research framework for economic sociology with its focus on the explanation of capitalist dynamics. The sociological microfoundation for understanding of capitalist dynamics (...) should focus on the expectations actors have regarding future states of the world. Based on a discussion of what I call the four Cs of capitalism, I argue that under conditions of uncertainty, expectations are contingent and should be understood as “fictional expectations.” The capability of humans to imagine future states of the world that can be different from the present is the central basis for a sociological microfoundation of the dynamics of economic macro phenomena. Macroeconomic dynamics are anchored in these “fictional expectations,” which create motifs for engaging in potentially profitable but ultimately incalculable outcomes. This shifts attention to the “management of expectations” as a crucial element of economic activity and to the institutional, political, and cultural foundations of expectations. The reproduction of capitalism is precarious also because of the contingency of expectations conducive to its growth. (shrink)

The link between Corporate Social Responsibility (CSR) and financial performance has continued to generate mixed and inconclusive results. Most studies in this area seem to assume that corporate social and financial performance share the same underpinning logic. Drawing from a qualitative analysis of practitioners' accounts of the challenges of mainstreaming the market for responsible investments, as part of the broader CSR agenda, this article re-examines this taken-for-granted assumption in the extant literature, and reaches the conclusion that CSR, as a complex (...) private governance of externalities, does not easily lend itself to measurability and profitability. In other words, not everything about CSR is measurable and profitable as much as the financial markets would expect. Comparing what is rendered measurable and profitable, on one hand, and what is yet to fully lend itself to measurability and profitability, on the other, is identified as one of the fundamental flaws of this literature. As such, CSR and financial performance will continue to run on competing logics until their different markets are distinctively articulated and/or aligned. (shrink)