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Society and economy framework and principles

45;
dynamics of, 204–205; economic,
28–29; economic action, impacted by,
35–36; Ellickson on, 40–44; emergence
of, 38; emotions impact on, 29–30,
42–43; for esteem, 40; evolution, 26;
exclusionary, 43; family, 173–174; force
of, 32–34; functional, without
mechanism, 40; group benefitting
from, 44; as harmful to group, 44–45;
human nature and, 35–36; inefficiency
identification of, 43; inefficient, 43;
influence of, 35, 38; malleability of,
51–52; market interactions, 37; market
pricing, 41–42, 46; mental constructs,
27; moral judgments impact on, 49–50;

Index

Parsons on, 28; problem-solving,
39–40; of reciprocity, 46–47, 49–50, 66,

70; role of, 1; self-interest, 45–46;
shame, guilt impact on, 31; social
context of, 135–136; social networks
and, 15–16; in sociology, 28–29;
theoretical work on, 38–39; trust based
on, 70–72; welfare impacted by, 39,
44–45
Null hypothesis, 3, 4; of economic
rationality, 108; of human nature, 3–4;
of individualism, 77; on nature of
action, 11; of parsimony, 45–46; of
self-interest, 73; of socialization, 45
Occupations, 33–34
OEM. See Original equipment
manufacturer
Opportunity, 112
Order, 12
Organization, 231n2, 232n2; history of,
140–141; of industry, 141, 158–159;
institutions, theory of, 140–141,
162–163
Original equipment manufacturer
(OEM), 156, 160–163
The Origins of Non-Liberal Capitalism
(Streeck and Yamamura), 189–190
Outcomes, 2
Ownership, 130–131
Pareto, Vilfredo, 117, 229n17, 230n2
Parsimony: human nature of, 4–5; null
hypothesis of, 45–46; trust impacted
by, 60–61, 72–73
Parsons, Talcott, 12, 14, 228n11, 229n13;
on functional prerequisites, 137; on
power as centralized, 52; on power of
money, 97–98; on social consensus, 80;
on values and norms, 28
Partnership system, 176–179
The Passions and the Interests
(Hirschman), 56–57
Path dependence, 9–10


Patriarchy, 90, 176
Personal relationships: based on
sympathy, 84; benefits of, 60–61;


Index

deception in, 81; emotions in, 61–62;
identity impact on, 64–65; markets
impact on, 83–84; as necessity, 84; trust
in, 62–65; of victim-offender, 64
Political science, 28, 46, 95, 100, 127
Politics, culture of, 151–153
Pollution, 101, 103
Popkin, Samuel, 51–53
Positivistic, 12
Power, 1, 89–90, 232n11; in animals, 104;
from brokerage, 106–126, 232n8;
centralization of, 52; from control of
agenda and discourse, 100–103,
127–128, 232n5; from dependence,
92–97, 104; domination as, 92;
dynamics of, 204–205; of elite, 116–126,
118, 232n10; of entrepreneurship,
112–116; in hierarchy, 129–132; history
of, 133–134; from individual characteristics, 103–104; from interests, 103;
invisibility and, 102; legitimacy-based,
97–100; macro-level perspectives on,
125–134; Marx on, 92–93; of money,
97–98; through ownership, 130–131;
from resources, 108–110, 129–134;
seizure of, 110–111; small worlds and,
116–126, 122–123; social exchange
impacted by, 94–95; from social
network position, 104–105, 232n6;
social structure and, 103; in spheres of
exchange, 105, 112–116; varieties of,
91–92; Weber on, 91–93, 96–97
The Power Elite (Mills), 117
Pragmatist epistemology, viii, 22, 144,
149, 172
Pragmatist view, 28, 139, 147, 154, 187,
189, 192, 194, 202, 203, 227n2
Prisoners’ Dilemma, 63
Problems, of order, 12
Problem-solving, 171–172; action as,
192–193; human nature and, 139–140,
147; institutions for, 190–191, 201–203;
norms for, 39–40; social movement,
143–144
Professional communities: elite in,
118–122; ethics in, 33–34; moral
commitment of, 49; recruitment in,

241

social network, 179–180; small worlds
in, 123–125
Psychology: behavioral, 94–95; cognitive,
138; of emotions, 32–35; moral, 31, 35,
41; of moral dilemmas, 154; social, 16,
105, 112, 141; of social sciences, 3–5; of
trust, 58–59, 67
Railway industry, 151
Rational action, 1, 26, 34–35, 227n2
Rationality: of cooperation, 58–59;
economics, 108; human nature and, 57;
trust and, 59–63
Rationalization, 59–60
The Rational Peasant (Popkin), 51
Reciprocity: exchange of, 105, 232n6;
norms of, 46–47, 49–50, 66, 70
Reductionism, 4–5; arguments of, 12
Redundancy, 108
Relational embeddedness, 17–18
Relationships. See Personal relationships
Renaissance men, 102, 179
Reputation, 41, 61–63, 83, 87, 141; bad,
81–82; consequences, 67; establish,
172; power of, 77
Resources, 179–186; acquisition of, 84,
95–96; benefits from, 61–62; commitment of, 85–86; control over, 50, 92–95,
98, 121, 126, 134; entrepreneurship
and, 5–6; exchange of, 16–17, 50–51,
67, 96, 100, 103–107; for guiding
action, 184–193; human, 140–141, 162;
investment of, 71–72, 79–80; power
from, 108–110, 129–134; scarcity of,
1–2, 96
Ricardo, David, 13, 228n12
Risk: protection against, 69; of trust, 58,
72–73
Robbins, Lionel, 2
Robust action, 110, 184
Roe, Mark, 152
Role conflict: in family, 172–173; in
institutions, 172–173
Rules, 98–100
Sacred values, 35, 74
Samuelson, Paul, 21


242

Scarcity, 1–2
Scott, James, 50
The Search for Order (Wiebe), 142–143
Self-interest: atomization from, 13;
cooperation beyond, 36–38; norms,
45–46; null hypothesis of, 73; realization, 27
Shame: behavior impacted by, 30–31; as
moral dilemma, 32–33; norms
impacted by, 31
Silver, Allan, 83–84
Simmel, Georg, 93–94, 106–107
Skinner, B. F., 4
Small worlds: collapse of, 133; power in,
122–123; in professional communities,
123–125
Smith, Adam, 13, 21, 83–84
Social capital, 82
Social consensus, 80
Social context: of culture, 135–136; of
individuals, 135–136
Social exchange, 23, 63, 104–105; power
impacting, 94–95; theory, 67
Social identity, 67, 82, 109–110
Social institutions, 4, 15, 25, 76; capitalist,
138; definition of, 136; discussion of,
135–136; individual action impacted
by, 12; intersecting, 179; like polity, 97;
theory of, 6
Socialization: approval in, 23; for
cooperation, 56; as equilibria, 37; labor
markets impacted by, 24; null hypothesis of, 45; obedience as, 11–12
Social movement, 143–144
Social networks, 227n4; advantage in,
23–24, 44; authority in, 131–132;
autonomy in, 107–108; for community
welfare, 85–86; consequences and, 15;
contours of, 45; density of, 229n15;
embeddedness in, 17–20; influence on,
18–19; norms, 15–16; occupations,
33–34; power from position in,
104–105, 232n6; professional recruitment in, 179–180; redundancy within,
108; reputation in, 81; as small worlds,
116–118; structural holes in, 16–17,
110–112; weak ties in, 16

Index

Social psychology, 16, 105, 112, 141
Social sciences, 3–5
Social setting, 11–12
Social structure: intersection, 112;
mechanism, 54; power and, 103
Sociobiology, 6
Sociological exchange theory, 94,
104–109
Sociology, 135–136, 227n1, 232n1; norms
in, 28–29
Solution: institutional, 6–7; understanding of, 8
Sorge, Arndt, 193–194, 197–200
Spheres: of exchange, 105, 112–116;
institutions and, 137–138
Standard and Poor’s, 87, 124
Stark, David, 185–187
Static analysis, 8–9
Status hierarchy, 95
Steel industry, 194–197
Stigler, George, 13
Stories: adaptive, 6–7, 10, 43, 150; of
evolution, 6
Strategy: action, as optimum, 110–112;
among individuals, 51–52
Streeck, Wolfgang, 189–190, 192
Strong Managers: Weak Owners (Roe),
152
Structural embeddedness, 18–19, 65–66,
231n7
Structural holes: bridge over, 114–115;
brokerage and, 106; in social networks,
16–17, 110–112
Structure: of authority, 111, 129–130; in
automobile industry, 166–167,
169–170; of business groups, 87–89;
trust from, 82
The Structure of Social Action (Parsons),
12
Systems theory, 5, 227n3
Technology, as path dependence, 9–10
Temporal embeddedness, 19–20
Tertius gaudens, 106–107
Tertius iungens, 106–107, 118
Textile industry, 153–154
Thelen, Kathleen, 136


Index

“The Methodology of Positive Economics” (Friedman), 7
Theory: applied rational choice, 3–4;
evolution game, 38; exchange, with
social identity, 109–110; institutional,
of organization, 140–141, 162–163; of
modernization, 87; systems, 5, 227n3
The Theory of Price (Stigler), 13
The Theory of the Leisure Class (Veblen),
43
Thompson, E. P., 27; on paternalism, 46
Thrift industry, 142
Trust, 1, 55, 89–90, 230n3; aggregation of,
81; in automobile industry, 167–169;
concept of, 56–59; conditions for,
72–80; cultural impact on, 84–85;
culture of, 96–97; dichotomy of, 78;
dynamics of, 204–205; enforceable,
231n9; in entrepreneurship, 79; of
family, 71–72, 78–79, 87–89; in
government policy, 83; in groups,
65–68; high level of, 71, 78–79, 85, 146;
institutional sources of, 68–70, 75–76;
institutions impact on, 84–85; of
interests, 76; in leader, 86–87; low level
of, 71, 78–79, 84–85; at macro level,
85–86; from norms, 70–72; parsimony
impact on, 60–61, 72–73; in personal
relationships, 62–65; psychology of,
58–59, 67; rationality in, 59–63; risk of,

243

58, 72–73; as social capital, 71; of
strangers, 80; from structure, 82
Ultimatum Game (UG), 36–38, 230n4
Utilitarianism, 12, 59–60
Value-rational action, 20
Values: as broad concept, 27; emotions
impact on, 35; justification of, 185–186;
as mental constructs, 27; Parsons on,
28
Veblen, Thorstein, 43
Venture capital financing industry,
183–184
Wall Street, 101–102
Weak ties, strength of, 16, 107
Weber, Max, 1–2, 20, 231n3,4; on power,
91–93, 96–97
Wiebe, Robert, 142–143
Williamson, Oliver, 52, 57
Wilson, E. O., 4
World Values Survey (WVS), 70, 78, 150
Wrong, Dennis, 11–12
WVS. See World Values Survey
Yamamura, Kozo, 189–190
Zucker, Lynne, 62, 66, 69, 75, 140
Zuckerman, Ezra, 108



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