Organisms change their shape and behavior during ontogenesis in response to incentives—what biologists call “phenotypic plasticity” or what is called here more specifically “behavioral plasticity.” Such plasticity is usually in the direction of enhancing welfare or fitness. In light of basic concepts in economics, such behavioral plasticity is nothing but rationality. Such rationality is not limited to organisms with neural systems. It also characterizes brainless organisms such as plants, fungi, and unicellular organisms. The gist of the article is the distinction (...) between rationality and intelligence. Whereas rationality is ubiquitous in all organisms, intelligence varies in degrees depending on division of labor that may involve the evolution of a neural system. This article aims to defend the universality of rationality—the Organismus oeconomicus hypothesis. It argues that neither the notion of bounded rationality of behavioral economics nor Herbert Simon’s “procedural rationality” can ultimately undermine the Organismus oeconomicus hypothesis. (shrink)

This book consists of a dialogue between two interlocutors, Pablo and a student, who discuss a great range of issues in social philosophy and political theory, and in particular, the emergence, working properties and economic effects of institutions. It uses the dialogical form to make philosophy more accessible, but also to show how ideas develop through intellectual interaction. The fact that one of the interlocutors is the "student" in a place in the real world makes the dialogue quasi-fictive in character (...) and enables the active engagement of the reader. After all, we are all philosophers and we develop our own philosophy by exchanging views and arguments. The dialogue form is and should remain the principal form of philosophizing, since ideas, like butterflies, do not merely exist – they develop. This is certainly the case in actual philosophical interaction, and it can be the case in written philosophical exposition. Although the dialogue does not presuppose prior acquaintance with the respective philosophical and social scientific literature under discussion in this book, it makes arguments more accessible, and conveys the feeling that there are no definite solutions to philosophical problems. (shrink)

The present article asks what lessons the empirical case of institutional change in post-Soviet Russia yields for the recent research on ideas and institutions. Its main point is that in post-Soviet Russia a clash between imported foreground ideas and deep domestic background ideas led to an ideational division among the elite of the country that became a main obstacle to the provision of coherent economic reforms. This story stands in some contrast to much of the newer literature on ideas and (...) institutions, which tends to see critical junctures as leading from one equilibrium to another. I argue that tensions between imported foreground ideas and deep domestic backgrounds are likely to occur in other cases of far-reaching processes of institutional change based on Western ideas but taking place beyond the realm of Western, industrialized countries. Therefore, I argue, some general lessons on the interplay between ideas and institutions might be drawn from this case study. (shrink)

Functioning markets require a state that will enforce property rights; contracts mediated by money; and the prevalence of a certain type of morality that prevents people from cheating in complex exchange relationships. Monetary exchange abstracts from the personal loyalties that bind small groups together, but at the same time it creates an overarching commitment to norms that bind people more loosely in national societies—as long as monetary exchanges are enforced by the state. In the Soviet Union, conversely, the abolition of (...) money as a universal medium of exchange led both to a deterioration of the norms of impersonal morality and to a loss of state capacity. The state lost control of the economy to informal, personally binding economic networks, and it lost its monopoly on violence in competition with sub-state, personal enforcers of impersonal economic commitments between these networks. Thus, capitalism can be seen as diverting people from norms of loyalty to the members of the relatively small groups of which they are a part toward loyalty to the abstract norms that make it possible for anonymous people to deal with each other reliably. (shrink)

Dynamics concerns the process of change in variable conditions through time at any level of analysis. Various important issues or topics in stakeholder theory and practice involve consideration of change over time and thus unavoidably involve dynamics. While dynamics has received explicit recognition in stakeholder literature, dynamic analysis remains partly tacit and suffused through the literature. One reason is that dynamics remains difficult to model even in economics. This article provides a basic orientation to stakeholder dynamics as a key conceptual (...) and methodological issue for stakeholder thinking. This article identifies current literature concerning stakeholder dynamics and evaluates future directions in dynamic reasoning that would help build stakeholder theory and improve practice of stakeholder management. Notions of competition, influence strategies, change in stakeholder networks, mindsets, salience or values, learning, creative destruction, long-term sustainability, stakeholder reciprocity, sustainable development, and value creation all embed change and thus time dynamics. Static complexity and heterogeneity across units-of-analysis are not the same as dynamics but do also change over time. Dynamics concerns how change process influences consequences (later in time) in relationship to antecedents (earlier in time). Management copes with change process, as much as with complexity and variation in antecedents and consequences. (shrink)

Drawing on institutional and signaling theories, this study examines how environmental corporate social responsibility affects firm performance in a dysfunctional institutional environment. We extend the ECSR literature by suggesting that ECSR indirectly influences firm performance through the mediating effects of business and political legitimacy. Based on a dataset of 238 firms in China, we find that ECSR affects business and political legitimacy followed by firm performance. Moreover, legal incompleteness weakens and legal inefficiency strengthens the effects of ECSR on business and (...) political legitimacy. (shrink)

According to Kanazawa (Psychol Rev 111:512–523, 2004), general intelligence, which he considers as a synonym of abstract thinking, evolved specifically to allow our ancestors to deal with evolutionary novel problems while conferring no advantage in solving evolutionary familiar ones. We present a study whereby the results contradict Kanazawa’s hypothesis by demonstrating that performance on an evolutionary novel problem (an abstract reasoning task) predicts performance on an evolutionary familiar problem (a social reasoning task).

The responsibilities of the manager have been examined through several lenses in the business ethics literature: Kantian (Bowie, 1999 ), contractarian (Donaldson and Dunfee, 1999 ), consequentialist (Friedman, 1970 ), and virtue ethics (Solomon, 1992 ), to name just four. This paper explores what the ethical responsibilities of the manager would look like if viewed through an evolutionary lens. Discussion is focused on the impact of evolutionary thinking on the process of moral reasoning, rather than on the sources or the (...) substance of morality. The conclusion is reached that the evolutionary lens supports the view that moral luck plays an important role in how we assign ethical responsibilities. (shrink)

In this article we investigate the value and utility of Machiavelli’s work for Community-Based Natural Resource Management. We made a selection of five topics derived from literature on NRM and CBNRM: Law and Policy, Justice, Participation, Transparency, and Leadership and management. We use Machiavelli’s work to analyze these topics and embed the results in a narrative intended to lead into the final conclusions, where the overarching theme of natural resource management for the common good is considered. Machiavelli’s focus on practical (...) realities produces new, sometimes unsettling, insights. We conclude that this focus helps to understand the development and performance of management regimes and their consequences and that institutional design should be seen as an ongoing process, which requires a constant adaptation of these institutions. (shrink)

Many economic theorists hold that social institutions can lead otherwise irrational agents to approximate the predictions of traditional rational choice theory. But there is little consensus on how institutions do so. I defend an economic internalist account of the institution-actor relationship by explaining economic rationality as a feature of individuals whose decision-making is aided by institutional structures. This approach, known as the subjective transaction costs theory, represents apparently irrational behavior as a rational response to high subjective transaction costs of thinking (...) and deciding. The theory has two attractive features. First, it reconciles rational choice theory with the increasing body of evidence cataloguing putative errors in economic decision-making. Second, it vindicates the explanatory power of individual choice against externalist challenges; the subjective transaction costs theory keeps economic rationality in the head. (shrink)

Theories of institutions can be classified into two broad approaches: institutions-as-rules and institutions-as-equilibria. According to the first approach, institutions are conceived as rules that guide the actions of individuals engaged in social interactions. On the other hand, the second approach views institutions as behavioral patterns. In order to have a complete picture of institutions, we need to take both approaches into consideration. Individuals construct mental models to produce expectations about institutions, while institutions make individual expectations relatively compatible. The main purpose (...) of this paper is to develop a general framework within which it is possible to analyze coevolution of individual mental models and institutions. (shrink)

This paper examines two paths by which F. A. Hayek’s work has influenced the cognitive theory of institutions: cognition and cultural evolution. It argues that there is a relationship between the sensory order and the social order. The explanation of social order begins with the human mind. This is illustrated with ideas relating to understanding culture from a cognitive viewpoint. Human cognition makes cultural evolution an endogenous process. The paper draws on ideas of co-evolution of individuals’ mental models and their (...) actions. Mental models can be modified by feedback from altered perceived reality as a consequence of peoples’ altered actions. A key to understanding cultural evolution is an understanding of how individuals modify their mental models. (shrink)

The ways in which societies and institutions institutionalize and practice invention management reflects not only how new ideas are valued, but also imaginaries about the role of science and technology for societal development. Often taking the US Bayh-Dole-Act as a model, many European states have recently implemented changes in how inventions at academic institutions are to be handled to optimize their societal impact. We analyze how these changes have been taken up—and made sense of—in regions with different pre-existing infrastructures, practices (...) and semantics of invention management. For doing so, we build on a comparative analysis of continuities and changes in infrastructures, practices and semantics of invention management in North-Rhine Westphalia and Saxony to reflect on how academic institutions have been handling inventions along transforming socio-political contexts. Building on document analysis and qualitative interviews with research managers, we discuss ongoing differences in practices of invention management and the semantic framing of the societal value of inventions in NRW and Saxony, and discuss how this can be understood before the background of their ideological, political and economic separation until reunification in 1990. Joining the conceptual perspectives of path dependencies and sociotechnical imaginaries, we argue that two critical incidents in the history of these states allowed for wide-ranging institutional alignments, but also allowed path dependencies in practices and semantics of invention management to prevail. (shrink)

Assisted reproductive technology is a global market engaging a variety of local moral economies where the construction of the demand–supply relationship takes different forms through the operation of the politics of value. This paper analyzes how the market–culture relationship works in different settings, showing how power and resources determine what value will, or will not, accrue from that relationship. A commodity’s potential economic value can only be realized through the operation of the market if its cultural status is seen to (...) be legitimate. At the same time, local moral economies and their associated social orders are potentially susceptible to the destabilizing implications of new commodities. The formal or informal organization of power relationships in the market–culture interaction can enable potential value to become manifest and tangible over time or block its path. The interaction is steered through national institutional sources of cultural authority embedded in state and religion, where the visible contest in the politics of value is conducted. Increasingly, that interaction finds its expression in transnational institutions of governance where the struggle for control of the cultural agenda reflects the global nature of the ART market. (shrink)

This paper wishes to problematize the foundations of production governance and offer an analytical perspective on the interrelation between agents’ preferences, strategic choice, and the public sphere . The value is in the idea of preferences being social in nature and in the application both to the internal stakeholders of the organisation and its impacts on people outside. Using the concept of ‘strategic failure’ we suggest that social preferences reflected in deliberative social praxis can reduce false beliefs and increase individual (...) wellbeing. From this approach, the paper offers a taxonomy of production organisations, based on social preferences about two variables: the governance form other strategic decisions that characterize the management of a company at a more operational level, once its fundamental legal form has been chosen. Each dimension is then categorised alongside two basic preferences: towards inclusion or exclusion of ‘publics’ that have no substantial access to decision power about these variables. Our framework explains governance heterogeneity by contrasting exclusive and inclusive social preferences in cooperatives, social enterprises, as well as traditional corporations. A discussion of the evolution of social preferences and organizational forms is addressed through examples and regional experiences. (shrink)

Half a century after Michael Polanyi conceptualised ‘the tacit component’ in personal knowing, management studies has reinvented ‘tacit knowledge’—albeit in ways that squander the advantages of Polanyi’s insights and ignore his faith in ‘spiritual reality’. While tacit knowing challenged the absurdities of sheer objectivity, expressed in a ‘perfect language’, it fused rational knowing, based on personal experience, with mystical speculation about an un-experienced ‘external reality’. Faith alone saved Polanyi’s model from solipsism. But Ernst von Glasersfeld’s radical constructivism provides scope to (...) rethink personal tacit knowing with regard to ‘other people’ and the intersubjectively viable construction of ‘experiential reality’. By separating tacit knowing from Polanyi’s metaphysical realism and drawing on Benedict Anderson’s concept of ‘imagined communities’, it is possible to conceptualise ‘imagined institutions’ as the tacit dimension of power that shapes human interaction. Whereas Douglass North claimed institutions could be reduced to rules, imagined institutions are known in ways we cannot tell. (shrink)

A common moral imperative to reduce human suffering in developing countries has helped to bring the international poverty reduction and conflict mitigation agendas together. But while research and practice are well established in the fields of poverty and conflict, the nexus between these two fields at the theoretical and practical levels is largely nascent. Lack of a shared body of knowledge has arguably impeded the ability of these communities to work together toward the overlapping goals of reducing poverty and conflict (...) in countries affected by violence and instability. Business, as a key sector of the international community, could potentially make significant contributions to the joint agenda if it were better integrated in efforts to develop the nexus. This article surveys the current states-of-knowledge in the fields of poverty and conflict, including the increasing influence of the fragile states theory. It then discusses some of the major schools of thought helping to bring poverty reduction efforts into alliance with conflict mitigation efforts. The third section identifies important conceptual convergences and divergences between the fields and reconsiders the prominent assumption that economic opportunity can be a powerful incentive for peace and stability. Finally, this article discusses potential areas that could advance the nexus of poverty and conflict at both a theoretical and practical level. (shrink)

ABSTRACTThis paper introduces the Alliance Approach, a participatory approach to problem solving and goal attainment through agency-enhancing behavioral change. The Alliance Approach is grounded in...

“Meaning” and “religion” appear as deeply interlinked concepts in modern thought. Theology has often discovered religious faith as a “source of meaning” against a background of “meaninglessness”, as the XX century existentialist philosophies would remark. Beyond such an apologetic stance, some philosophies of religion have tried to better describe such a link: hermeneutics, phenomenology and even systems theory, may be accounted as main attempts to tackle this very complex framework, and to show how religion provides meaning, or is built trough (...) structures of meaning, or is a form of “meaning-construction”. Cognitive approach may add new perspectives to better explain this implication. Recent attempts combine scientific methods and philosophical analysis to show how meaning is built and works, and how religion provides a specific sort of meaning, distinct from other forms in which meaning displays itself: moral, aesthetic, or affective. Describing religion in terms of “meaning management” helps to better understand its specific role and function in the human mind, beyond the most reductivist programs, and offers a more balanced view on its cognitive dimensions. Different attempts to connect religion and meaning are reviewed in this paper in order to offer an alternative model to the new scientific study of religion. (shrink)

In this article, we expand the analytical and theoretical foundations of the study of knowledge commons in the context of more classical agrarian commons, such as seed commons. We show that it is possible to overcome a number of criticisms of earlier work by Ostrom on natural commons and its excludability/rivalry matrix in addressing the inclusive social practices of “commoning”, defined as a way of living and acting for the preservation of the commons. Our empirical analysis emphasizes, using the most (...) recent advances in the IAD/ses framework, the distributed and collaborative knowledge governance in a French peasant seed network as a key driver for reintroducing cultivated agrobiodiversity and on-farm seed conservation of ancient and landrace varieties. These inclusive peasant seed groups developed alternative peer-to-peer models of collaborative peasant-led community-based breeding and grassroots innovations in the search for more resilient population varieties. Our results highlight the various models of collective action within the network and discuss the organizational tradeoffs of opting out of peasant seed activities and recreating a shared collective knowledge base on the benefits of restoring cultivated agrobiodiversity. It helps us better understand how modern peasant seed groups function as epistemic communities which contributes to envisioning alternative agricultural systems. (shrink)

This article examines how the EU gender mainstreaming approach has addressed work and family reconciliation across Southern Italian regions, to foster a more egalitarian and socially inclusive development. Drawing upon a survey of women of different socioeconomic backgrounds and in-depth interviewing of regional policy-makers, this article assesses what gender equality policies do and don’t do for work–family reconciliation within the Italian Mezzogiorno. Findings show that while poor women may be stigmatized as inadequate mothers, middle-class women are pushed to join men (...) in employment and civic sphere at the expense of caring. As both public and private caring supply is underdeveloped and unevenly guaranteed between protected and unprotected workers, women may be constrained to reduce their participation in the labour market. Traditional gendered family roles and power relations within the household may further discourage women to work, form and maintain a family. (shrink)

This paper articulates and defends three interconnected claims: first, that the debate on the role of values for science misses a crucial dimension, the institutional one; second, that institutions occupy the intermediate level between scientific activities and values and that they are to be systematically integrated into the analysis; third, that the appraisal of the institutions of science with respect to values should be undertaken within the premises of a comparative approach rather than an ideal approach. Hence, I defend the (...) view that the issue be framed in reference to the following question: "What kind of institutional rules should be in place in order for the scientific process to unfold in such a way that the values that we deem more important come to the fore?" Addressing this concern is equivalent to conducting a debate on institutions and their role for science. (shrink)

Scientific progress has many facets and can be conceptualized in different ways, for example in terms of problem-solving, of truthlikeness or of growth of knowledge. The main claim of the paper is that the most important prerequisite of scientific progress is the institutionalization of competition and criticism. An institutional framework appropriately channeling competition and criticism is the crucial factor determining the direction and rate of scientific progress, independently on how one might wish to conceptualize scientific progress itself. The main intention (...) is to narrow the divide between traditional philosophy of science and the sociological, economic and political outlook at science that emphasizes the private interests motivating scientists and the subsequent contingent nature of the enterprise. The aim is to show that although science is a social enterprise taking place in historical time and thus is of a contingent nature, it can and in fact does lead to genuine scientific progress - contrary to the claims of certain sociologists of science and other relativists who standardly stress its social nature, but deny its progressive character. I will first deal with the factual issue by way of introducing the main concepts and mechanisms of modern institutional theory and by applying them to the analysis of the cultural phenomenon that we call modern science. I will then turn to the normative issue: what is the appropriate content of the institutional framework, for scientific progress to emerge and be sustained at which level should it be set and by whom? Addressing this problematic is equivalent to conducting a constitutional debate leading to a Constitution of Science. (shrink)

In this paper I will discuss the problem of evaluating dynamic properties of the procedural rules that govern science. I will propose a novel framework for evaluating dynamic properties of such rules. This framework is based upon an analogy from New Institutional Economics. I will argue that the concept of ‘adaptive efficiency’, as it has been developed by Douglass North, solves a problem in economics that is analogous to the problem of evaluating dynamic properties of the procedural rules that govern (...) science. I will propose to apply the main ideas underlying this concept to Chrysostomos Mantzavinos’s theory of Explanatory Games. Based on these ideas, I will develop the concept of ‘explanatory efficiency’. This concept is meant to provide the means to evaluate the dynamic properties of Explanatory Games. I will argue that the proposed analogy also motivates more general applications of New Institutional Economics to traditional problems of philosophy of science. (shrink)

In this paper I will analyze and criticize Linsbichler’s recent proposition to interpret the fundamental axiom of Praxeology as analytic. I will first describe Linsbichler’s problem situation. I will then describe and criticize Linsbichler’s proposed solution to his problem; namely his interpretation of the fundamental axiom as analytic. I will argue that this idea does not fully utilize critical potentials that are available to improve the fundamental axiom. I will propose an alternative interpretation which I call the ‘critical interpretation’ that (...) conserves the progressive aspects of Linsbichler’s proposal while eliminating undesirable ones. (shrink)

The provision of responsible labor standards along the entire value chain poses considerable challenges for corporations. In particular, management shortcomings and institutional deficits—which are partly related to cultural issues—frequently impede the realization of responsible business practices in emerging and developing countries. It is widely established in theory that industry self-regulation constitutes a particularly promising approach for overcoming these challenges. Nonetheless, it is still an open question as to whether industry initiatives effectively promote responsible standards in practice. This contribution aims to (...) enrich the current discussion about the power of industry self-regulation to ensure responsible labor standards in factories in emerging and developing countries. For this purpose, we analyze the ICTI CARE Process, the self-regulation initiative of the international toy industry, that aims to promote responsible business practices in Chinese toy factories. The assessment of the ICP shows that corporations’ buying behavior is decisive in order for industry self-regulation to become an appropriate means of improving labor standards. Based on the insights from the study and from theoretical reasoning, we develop a framework for effective industry self-regulation that integrates the perspective of factories. (shrink)

This paper critically analyses one of the unexpected results of qualitative research aimed at detecting the presence of unethical business practices in Slovakia. The authors seek to find out why entrepreneurs participating in this research do not take responsibility for the development of business ethics and why, in their primary reflections on unethical practices in the Slovak business environment, have they shifted it almost completely to the State level (1), and whether their attitude is morally justified (2). The main theoretical (...) foundation in the following analysis is the theory of development of business ethics on three levels (micro, mezzo and macro), also known as the “subject-matter of business ethics” approach. The paper discusses attitudes of the research sample, including Slovak entrepreneurs and company representatives, towards the State, and the consecutive critical reflection of their opinions shows that businesspersons tend to give up on their own proactive approach to the development of business ethics and position themselves in the role of an “expectant” instead of a “creator” of ethical standards in society. Furthermore, the paper points out that businesses lack ethical self-reflection in relation to corruption, more precisely, they lack reflection of their place in the corrupt relationship with the State. Given these findings, the paper concludes that an essential basis for the long-term development of business ethics in our country is the establishment of partnerships between the State and business entities, while recognizing the place of nongovernmental democratic institutions. (shrink)

This paper studies the attempts (and failure) of Russian revolutionaries to mobilize the peasantry in the decade leading to the Soviet revolution of 1917. Peasants, who had been emancipated from serfdom only four decades earlier, in 1861, were still largely propertyless and poor. This would, at first glance, make them a ripe target for revolutionary activity. But peasants were largely refractory. We explain this lack of revolutionary spirit through two models. First, despite their lack of education and political awareness, the (...) peasants were rational in their refusal to participate in revolutionary activity; they engaged in a cost–benefit calculus which pushed them away from revolt and political organization. Second, based on the Wildavsky–Thompson cultural types, Russian peasants were largely fatalist: they believed they had no influence on the world, so it was not worth attempting to change it. This paper sheds light on some aspects of the Russian revolution, but also encourages further research in history and economic sociology on the interaction between culture and incentives. (shrink)

Many studies have addressed the justice of public land acquisition, but few studies have addressed the question of what landowners perceive as just. Individual perceptions drive an important part of the social and scientific debates on legitimate and just land acquisition. This article addresses this gap by studying landowners’ and land purchasers’ perceptions of just land acquisition. We did this by uncovering the prevailing discourse on just land acquisition and studying the values that shaped people’s perceptions of just land acquisition. (...) The results showed that perceptions of justice are based on the values of lawfulness, decentness and equality. These values were translated into different norms that resulted in expectations pertaining to just land acquisition. Insight into the different perceptions and the prevailing discourse of just land acquisition and their underlying values increases the understanding of land acquisition processes and land policy strategies. First, it becomes apparent that land acquisition has an essential element of injustice that cannot be avoided by a good process or a just compensation fee. Second, insight in different discourses provides valuable input for debates on just land acquisition. Third, such insight shows that money is not always a sufficient means of indemnification. The combination of sufficient financial compensation, the opportunity of a new location, attractive selling conditions and accurate and open process are all important requisites to ensure that public land acquisition is perceived by the majority of landowners as just. (shrink)

Researchers from across the social sciences have found consistent deviations from the predictions of the canonical model of self-interest in hundreds of experiments from around the world. This research, however, cannot determine whether the uniformity results from universal patterns of human behavior or from the limited cultural variation available among the university students used in virtually all prior experimental work. To address this, we undertook a cross-cultural study of behavior in ultimatum, public goods, and dictator games in a range of (...) small-scale societies exhibiting a wide variety of economic and cultural conditions. We found, first, that the canonical model – based on self-interest – fails in all of the societies studied. Second, our data reveal substantially more behavioral variability across social groups than has been found in previous research. Third, group-level differences in economic organization and the structure of social interactions explain a substantial portion of the behavioral variation across societies: the higher the degree of market integration and the higher the payoffs to cooperation in everyday life, the greater the level of prosociality expressed in experimental games. Fourth, the available individual-level economic and demographic variables do not consistently explain game behavior, either within or across groups. Fifth, in many cases experimental play appears to reflect the common interactional patterns of everyday life. Key Words: altruism; cooperation; cross-cultural research; experimental economics; game theory; ultimatum game; public goods game; self-interest. (shrink)

Through a systematic foregrounding of temporality as a framework of analysis, the dynamics of neo-liberal globalization and the revolution in ICTs constitute a new epistemological context. From this perspective the world as an economic, social, cultural, and political postmodernity becomes apparent. The article argues that liberal democracy was created and evolved in a specific context too. It was one formed through the interactions of Enlightenment thought and capitalist action - both of which were suffused by the temporality of the clock. (...) For nearly three-hundred years we have taken for granted its meter of the clock as the measure of temporal reality, and have similarly accepted that liberal democracy functions on the same temporal basis. This has blinded us to a "social acceleration" that has developed through the convergence of neo-liberal economics and ICTs to the point where liberal democracy and its clock time functioning simply cannot synchronize with the times of the network society. Classical liberal democracy has been rendered ineffectual as a means of democratic action, and neo-liberal globalization offers nothing to replace it. (shrink)

An important part of what it means for agents to be situated in the everyday world of human affairs includes their engagement with economic practices. In this paper we employ the concept of cognitive institutions in order to provide an enactive and interactive interpretation of market and economic reasoning. We challenge traditional views that understand markets in terms of market structures or as processors of distributed information. The alternative conception builds upon the notion of the market as a ‘scaffolding institution’. (...) Introducing the concept of market as a ‘socially extended’ cognitive institution we go beyond the notion of scaffolding to provide an enactive view of economic reasoning that understands the market participant in terms of social interactive processes and relational autonomy. Markets are more than inert devices for information processing; they can be viewed as ‘highly scaffolded’, where strong constraints and incentives predictably direct agents’ behavior. Building on this idea we argue that markets emerge from (a) the economic interaction of both supply and demand sides, in continual and mutual interplay, and (b) more basic social interactions. Consumer behavior in the marketplace is complex, not only determining the market price, but also extending the consumer’s cognitive processes to reliably attain a correct evaluation of the good. Moreover, this economic reasoning is socially situated and not something done in isolation from other consumers From a socially situated, interactive point of view buying or not buying a good is something that enacts the market. This shifts the status of markets from external institutions that merely causally affect participants’ cognitive processes to social institutions that constitutively extend these cognitive processes. On this view the constraints imposed by social interactions, as well as the possibilities enabled by such interactions, are such that economic reasoning is never just an individual process carried out by an autonomous individual, classically understood. In this regard, understanding the concept of relational autonomy allows us to see how economic reasoning is always embodied, embedded in, and scaffolded by intersubjective interactions, and how such interactions make the market what it is. (shrink)

In 2015, observers argued that the fourth agricultural revolution had been initiated. This article focuses on one part of this high-tech revolution: the origin, development, applications, and user value of unmanned aerial systems (UAS). Institutional changes connected to the UAS innovation are analyzed, based on a Swedish case study. The methods included autoethnography. The theoretical frame was composed by four perspectives: innovation, institutions, sustainability, and ethics. UAS can help farmers cut costs and produce higher quantity with better quality, and also (...) has environmental benefits. However, this promising innovation was exposed to institutional forces and suddenly became subordinated the Act of Camera Surveillance. This study illuminates how legislative institutions can inhibit responsible innovation. The study shows that different ethical perspectives can collide with each other. (shrink)

En este trabajo se ofrece un acercamiento desde el derecho a los análisis promovidos por las teorías institucionalistas, y conecta esos análisis con una concepción esencial de democracia y dos problemas de las democracias latinoamericanas: la subrepresentación de las mujeres en los parlamentos y el clientelismo político en el marco de la distribución de planes sociales. Para ello, se comienza con una aproximación al concepto de instituciones informales, que es central en los análisis institucionalistas, y se reconocen dos diferentes tipos (...) de instituciones informales con distintas características. Luego de ofrecida una concepción esencial de democracia y sus condiciones y condicionantes, se realiza un análisis de cómo las instituciones informales han afectado la eficacia y efectividad de las normas jurídicas dictadas para promover las cuotas de género en las elecciones parlamentarias y, como contracara, se muestra cómo un diseño adecuado de los programas de distribución de planes sociales ha logrado neutralizar instituciones informales tales como el clientelismo y la pequeña corrupción, que afectaban de manera directa a las democracias latinoamericanas. Finalmente se proponen ciertas ideas sobre la relevancia del buen diseño legislativo y su vinculación con las instituciones informales. (shrink)

In this paper we attempt to show that rhetoric plays an important role in economics as a science and in economy as a social system. Our task is rather demonstrative, but it aims at stripping away the illusion that economics has acquired a status equal to the natural sciences, in which there is no place for subjectivism and ambiguity. Economics belongs, after all, to the realm of the social sciences and as such it is subject to the limitations of human (...) cognition and understanding. We show that economics as a science is not free from employing sophisticated methods of persuasion and rhetoric. Next, we also try to demonstrate that rhetoric can be a useful tool in creating economic reality. It does not have influence on economic processes per se, but it is helpful in constructing an institutional architecture of the economy by influencing public opinion and decision makers. (shrink)

This study investigates the influence of formal and informal institutions on firm innovation in transitional economies of Central and Eastern Europe (CEEs) by explicitly differentiating between corruption and bribery as distinct informal institutions. We integrate institutional theory and legitimacy theory to explain that the failure of formal institutions creates an environment of corruption which encourages firms to use bribes to facilitate economic exchange. We test our hypotheses on the innovation performance of a sample (n = 1603) of firms in 11 (...) CEEs. The results show that weak rule of law and ineffective business regulations in CEEs propagate the perception of corruption that inhibits firm innovation. However, the use of bribery enables firms to transform this environment of corruption into innovation outcomes. The policy and managerial implications of our research for differentiating between corruption and bribery and our findings that bribery acts as the glue that binds formal and informal institutions are fully discussed. (shrink)

The modern social world is unjust. It is also complex. What does this latter fact imply about the kind of approach that should be used in ameliorating the injustice expressed in the former fact? One answer, recently put forth by Jacob Barrett, is that _ideal theory_, which he understands as being fundamentally defined by the identification and subsequent pursuit of an aspirational macro-level institutional goal, lacks a place in social reform. The reason he thinks ideal theory lacks a place has (...) to do with its inability to deal with complexity. _Pace_ Barrett, I argue that ideal theory, suitably understood, can play a valuable role in social reform in a complex world. While some ideal theorists have underappreciated the extent to which complexity considerations complicate social reform, this does not mean that there is no place for it. This paper surveys the resources ideal theory has available to cope with what I call _the challenge of complexity_. Although the coping techniques will be successful to varying degrees, I believe, in aggregate, a compelling case can be made that ideal theory can combat the challenge of complexity. Still, one may worry that even if ideal theory can adequately deal with complexity, it cannot adequately deal with ever-changing social circumstances. Call this _the dancing landscape objection_. A static ideal theory cannot overcome it, but a _dynamic ideal theory_ could. In sum, dynamic ideal theory can contribute to social reform in a complex and mutable social world. (shrink)

: In recent years, research on the family role and entrepreneurship has increased extremely, consolidating itself as a valid and current subject of study. However, a part of the scientific literature seems to lack systematization and the boundaries appear unclear, maybe due to its multidisciplinary nature. This paper presents a systematic analysis of academic research, applying bibliometric indicators and cluster analysis, which define the state of research on the international scene. For this purpose, using three well accepted databases among the (...) research community: Scopus, Web of Science, Business Source, a total of 92 articles were selected and analyzed, published between 1989 and 2019 (until March). The results show that this is a relatively recent field of study, with a multidisciplinary character and in which the most influential authors do not coincide with the most productive scientific journals. A cluster analysis finds out five main areas of literature development: the cluster with the largest percentage of co-occurrences (25%) is the one that relates to the dimensions of entrepreneurship, self-employment and personality; in contrast, the area with a lower percentage of co-occurrences of keywords (12,1%) is refers to family business, succession, economic development and Arabia Saudita. Based on the outcome obtained and the shortcomings above, in the final part of the article, possible points of reflection for future research are exposed, which could be useful to further of this field of study. (shrink)

There are several ontological and consequently also methodological mistakes in contemporary mainstream economics. Among them, the so-called ergodic axiom is play significant role. It is understandable that the real economy elaborated as formalized mental model looks like dynamic system on first sight. However, that is right only of dynamical systems in mathematical formalism. Economy that is in our understanding societal and/or collective economy is complex evolving organism. If we imagine such organism in the form of dynamical system that is as (...) clear mathematical formalism, we are losing their crucial authentic character. The significant irredeemable attribute of societal economy is lying in his complex evolving network process character created by large population of people with different decision-making and complex realizing among them. Going from these imaginations the two entities in a question that is dynamical system with their ergodicity and societal economic organism as complex evolving network are qualitative very different ones. That is the reason why we cannot accede with endeavours to draw on living economy straitjacket of ergodic axiom. To articulate that cause by other words ergodic dynamical systems are applicable for physical and partly for chemical entities and only scarcely are fit for living organisms. On the other hand however, as clear method the ergodic dynamical system have good applying for didactical approaches in economics where helping in better understanding some types of complexities in dynamics. The purpose of that essay is to discuss problems around usability of ergodic dynamical system theory and methods in economics in the age of advanced ICT knowledge based society. (shrink)

Different kinds of collectives help to coordinate between individuals and social groups to solve distribution problems, supply goods and services, and enable individuals to live fulfilling lives. Collectives, as part of the process of socialization, contribute to the normalization of behaviors, and consequently, structure our ability to be self-reflective autonomous agents. Contemporary philosophy of action models characterize collective action as the product of individuals who have the proper motivations to perform cooperative activities (bottom-up); or they begin with the social-level phenomena (...) and explain this in terms of individual actions and the mental states that motivate them (top-down). One general goal of this project is to show how and why both of these approaches through focusing solely on the individuals involved fail to capture and account for important types of group actions: those of economic group agents. Group agents, one kind of organized collective, are unique in that they have the potential to develop group-level decision-making processes that result in the capacity of the group to engage in practical reasoning. Because of this capacity, group agents can be stable and respond to reason--capacities we would not expect from other kinds of collectives. Inasmuch as we value the possibility of influencing the reflexive dynamics that perpetuate social institutions, understanding the range of organization structures and their agential capacities will open up the possibility of altering the course of those dynamics toward more just systems of organization. Understanding what kinds of group agents currently operate within the systems of organizations that make up social institutions is the first step in determining how to move toward developing group agents that are also moral agents. By analyzing how different systems of constraint--inside and outside the firm--inform one another to influence the possibility of design and the group's possibilities for action, I use Christian List and Philip Pettit's account of group agency as a springboard to develop a more adequate account of how structure influences and constrains the possibilities of economic group agents in non-idealized circumstances (i.e. this world, with our history). My chapters include 1) a taxonomy of organization structures and an analysis of how a narrow conception of organization structure in jurisprudence can lead to systems of constraint that limit the rights and freedoms of individuals even as it seeks to extend them, 2) an evaluation of the popular accounts of collective action (cf. Raimo Tuomela, 1997; Michael Bratman, 1993, 1997, 2009; and Christian List and Philip Pettit, 2011) that could be made to accommodate the actions of certain kinds of economic associations, 3) an exploration of the standards of evaluation that influence these powerful group agents, and how these standards limit the economic group agent's capacity to engage in moral reasoning, and 4) an analysis of the group agent's reasoning capacity and the internal mode of interaction between group agent and group members that perpetuate group agency. I argue that we can understand group agents that have the capacity to be moral agents as the products of a particular kind of decision-making process within an organization's structure. The decision-making process, together with the organization structure and group member support, produces and sustains judgments and actions at the level of the group that cannot be reduced to the beliefs and actions of particular members. In this way, the group displays a systematic unity of actions based on its own judgments. That is, the group exhibits agency. Moral group agents exhibit more than practical reasoning; they also demonstrate the capacity for critical reflection upon the ends they pursue. Member buy-in promotes a tight connection between group members and their role in bringing about and sustaining group agency, and is the foundation of the group agent. Without a holistic organization structure, a member's personal identities could undermine group aims, thereby undermining group agency. Group moral agency, I argue, begins with promoting an organizational way of life conducive to collective flourishing and respect for members. (shrink)

This dissertation shows how initial conditions play a special role in the explanation of contingent and irregular outcomes, including, in the form of geographic context, the special case of uneven development in the social sciences. The dissertation develops a general theory of this role, recognizes its empirical limitations in the social sciences, and considers how it might be applied to the question of uneven development. The primary purpose of the dissertation is to identify and correct theoretical problems in the study (...) of uneven development; it is not intended to be an empirical study. Chapter 1 introduces the basic problem, and discusses why it has become especially salient in debates concerning uneven development. Chapter 2 develops an argument for the importance of initial conditions in the philosophy of science, developed specifically in the context of the Bhaskar/Cartwright ‘open systems’ (and by extension, ‘exogenous factor’) emphasis on the ubiquity of contingency in the universe and rejection of explanation based on laws of nature (regularity accounts) of causation. Chapter 3 makes three claims concerning the concept of contingency, especially as related to the study of society: 1) that there are eight distinct uses of the word contingency, and its many meanings are detrimental to clarity of discussion and thought in history and the social sciences; 2) that it is possible to impose some order on these different uses through developing a classification of contingency into three types based on assumptions concerning possible worlds and determinism; 3) that one of the classes is a special use of the word without relevance to the social sciences, while the two remaining classes are nothing more than a variety of the ‘no hidden factors’ argument in the debate on indeterminism and determinism (and thus related to the concept of spacetime trajectories caused by initial conditions and the interference of these in the form of ‘exogenous factors’ with ‘open systems’). Chapter 4 The concept of explanation based on initial conditions together with laws of nature is widely associated with determinism. In the social sciences determinism has frequently been rejected due to the moral dilemmas it is perceived as presenting. Chapter 4 considers problems with this view. Chapter 5 considers attitudes among geographers, economists, and historians towards using geographic factors as initial conditions in explanation and how they might acceptably be used, in particular their role in ‘anchoring’ aspatial theories of social processes to real-world distributions. Chapter 6 considers the relationship of the statistical methods common in development studies with the trend towards integrating geographical factors into econometric development studies. It introduces the statistical argument on ‘apparent populations’ that arrives at conclusions concerning determinism consistent with Chapters 2 and 3 of the dissertation. The need for the visual interpretation of data with descriptive statistics and maps and their utility in the study of uneven development is discussed with a number of examples. Chapter 7 applies these concepts to the ‘institutions versus geography’ debate in development studies, using Acemoglu, Johnson and Robinson’s 2002 ‘reversal of fortune’ argument as a primary example. Chapter 8 considers possible directions for future work, both theoretical and empirical. Chapter 9 concludes with a discussion of additional possible objections to the use of initial conditions as exogenous factors in explanation. (shrink)

Gender greatly impacts access to opportunities, potential, and success in corporate leadership roles. We begin with a general presentation of why such discussion is necessary for basic considerations of justice and fairness in gender equality and how the issues we raise must impact any ethical perspective on gender in the corporate workplace. We continue with a breakdown of the central categories affecting the success of women in corporate leadership roles. The first of these includes gender-influenced behavioral factors, such as the (...) requirements and expectations of gendered verbal and nonverbal communication styles as well as appearance. We move on to address the impact of family on corporate leadership opportunities and success, discussing the asymmetrical evaluation of an individual’s potential, authority, and competence based on gender stereotypes of familial obligations and expectations. Finally, we address how gender impacts access to networking and sponsorship opportunities and the long-term effects of systematic limitations on women’s inclusion in the upper echelons of corporate leadership. We conclude with a summary of the questions and issues raised by our discussion and direct individuals to consider how different ethical systems and moral requirements might influence their interpretations of gender and leadership in the corporate workplace. (shrink)

The article provides an overview of the basic concepts and principles of the theory of institutions as well as of the mechanisms of emergence and evolution of social institutions. It introduces a distinction between formal and informal institutions based on the the criterion of the enforcement agency of institutions. Finally it discusses the problem of path dependence.