Alternative Microeconomics – Part 1, Chapter 4 – Individual and Community (original) (raw)

AI-generated Abstract

This chapter discusses the interplay between individuals and communities, emphasizing the importance of social institutions in coordinating diverse objectives within a community. It presents the idea that both individual behavior and institutional structures shape societal values, and addresses the significance of justice and moral frameworks in maintaining social order. The text also highlights the need for social cooperation and the role of mercenary exchange when moral persuasions fail, ultimately advocating for a balance between beneficence and enforceable justice as foundations of a functional society.

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FORMAL AND INFORMAL INSTITUTIONS AND MARKET AFORES

The paper has made a review and analysis of a relatively new market in Mexico, the afores´s market. The afores´s market is of fundamental importance in the social development and economic life of the country; however, the market has not developed as expected or given the results that are needed. This paper proposes that the slow development of the market is due to the afores´s institutional factors, both formal and informal. Major market forces are analyzed, demand and supply and the link found in each of them and slowly developing the legal framework that governs and cultural traits of Mexican society is exposed.

Commitment, Coercion, and Markets: The Nature and Dynamics of Institutions Supporting Exchange

Markets rest upon institutions. The development of market-based exchange relies on the support of two institutional pillars that are, in turn, shaped by the development of markets. Research in the field of new institutional economics has largely focused upon one such institutional pillar-'contract-enforcement institutions'-that determine the range of transactions in which individuals can commit to keep their contractual obligations. Yet, markets also require institutions that constrain those with coercive power from abusing others' property rights. These 'coercion-constraining' institutions influence whether individuals will bring their goods to the market in the first place.

Cognitive foundations of economic institutions: Markets, organizations and networks revisited

Scandinavian Journal of Management, 1995

The present article discusses the trade-offs between markets, organizations and networks in terms of the cognitive means and the values underlying them. It is claimed that the regulative ability of the market is inextricably bound up with the numerical codification of economic activity supported by the utilitarian world view. Numerical objectification and utility constitute the ontological prerequisites for the creation of marketable objects. Modernity coincides with the transformation of markets from places to set of functions or mechanisms. It is this way that the market overcomes the limitations of context-embedded exchange and becomes a major form of regional, national and global socio-economic coordination. Organizational relationships on the other hand are heavily dependent upon the medium of natural language, escaping thorough numericalization and retaining a plurality of values. Formal organization can and needs to act on the world on the basis of ambiguous signals that resist quantification whereas the market collapses without quantifying techniques that assign numerical values, i.e. prices, to objects and activities. Networks reclaim the regulative power of communal dialogue freed from the cognitive closure of the market and the social rigidity of authority mediated relationships.

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