Networks and embeddedness

1
Networks and embeddedness

• Market connected to/embedded within society
• Markets characterised by social connections

2
Fliegstein

• Which social rules must exist for markest to
  function, and what types of social structures are
  necessary to produce stable markets?
• What is the relation between states and firms in
  the production of markets
• What is a social view of what agents seek to do
  in a market as opposed to an "economic" one

3

• What are the dynamics by which markets are
  created, attain stability, and are transformed,
  and how can we characterize the relations among
  markets?
• What are the implications of market dynamics for
  the internal structuring of firms and labour
  markets more generally?

4
States and markets (Fliegstein)

• Economic entrepeneurs dependent on kontext
• Institutions
• Market stability

5
Markets as fields

• Production markets
• Field hierarchies, scripts and cultures
• State has meta capital
• Markets regulated by states, transnational bodies
  of governance
• Signalling
• Survival and stability seekers rather than profit
  maximisers
• Fields supply cognitive frames and conceptions of
  control

6
New economy

• Flat structures, open sources, adaptation,
  innovation, increasing rates of return, state
  marginalised.
• Formation of new markets but.

7
Granovetter Networks between two poles

• Oversocialised
• Undersocialised
• Both are for Granovetter atomised individuals

8
Solution

• Free actors that however adjust their actions to
  social context i.e. networks.
• No general norms for economic action, but every
  network contains many informal norms and tacit
  scripts.

9
Organisations and markets

• Uncertain and complex activities are taking place
  inside hierarchically ordered firms.
• Simple activities between firms, i.e. in markets,
  ruled by individual interest and formal
  contracts.
• Oversocialised understanding of organisations and
  undersocialised of markets