Skip to main content Accessibility help
×
Home
Hostname: page-component-747cfc64b6-rtmr9 Total loading time: 0.218 Render date: 2021-06-15T14:00:05.404Z Has data issue: true Feature Flags: { "shouldUseShareProductTool": true, "shouldUseHypothesis": true, "isUnsiloEnabled": true, "metricsAbstractViews": false, "figures": true, "newCiteModal": false, "newCitedByModal": true, "newEcommerce": true }

The intellectual orders of a market economy

Published online by Cambridge University Press:  08 February 2017

KÁROLY MIKE
Affiliation:
Faculty of Economics, Corvinus University of Budapest and HETFA Research Institute, Budapest, Hungary
Corresponding

Abstract

Not only do ideas matter in economic development but so do the institutions of intellectual debates in which ideas are formed. Scholars usually point to intellectual debates whose institutions are largely exogenous to the economy (e.g. those of religion or science). I suggest that economists should also consider intellectual debates that are initiated by economic actors. I set out to understand the role of intellectual debate in the economy and, drawing on Polanyi's concept of ‘intellectual order’, the institutions that emerge endogenously to support it. Professional communities and public intellectual spheres are shown as the most important examples. Three historical cases are given as illustrations. I conclude that these intellectual orders should be included among the fundamental ‘institutions of capitalism’, along with the catallactic institutions of property and contract.

Type
Research Article
Copyright
Copyright © Millennium Economics Ltd 2017 

Access options

Get access to the full version of this content by using one of the access options below.

References

Allen, R. C. (1983), ‘Collective Invention’, Journal of Economic Behaviour and Organization, 4 (1): 124.CrossRefGoogle Scholar
Benner, C. (2003), ‘Learning Communities in a Learning Region: The Soft Infrastructure of Cross-Firm Learning Networks in Silicon Valley’, Environment and Planning A, 35 (10): 1809–30.CrossRefGoogle Scholar
Bourdieu, P. (1990), ‘The Intellectual Field: A World Apart’, in In Other Words: Essays towards a Reflexive Sociology, Stanford: Stanford University Press, pp. 140–9.Google Scholar
Bourdieu, P. (1983), ‘The Field of Cultural Production, or: The Economic World Reversed’, Poetics, 12 (4–5): 311–56.CrossRefGoogle Scholar
Bowles, S. (1998), ‘Endogenous Preferences: The Cultural Consequences of Markets and Other Economic Institutions’, Journal of Economic Literature, 36 (1): 75111.Google Scholar
Buchanan, J. M. (2001), ‘The Potential for Tyranny in Politics and Science’, in Moral Science and Moral Order: The Collected Works of James M. Buchanan, Vol. 17, Indianapolis: Liberty Press, pp. 153–70.Google Scholar
Casson, M. (1982), The Entrepreneur: An Economic Theory, London: Gregg Revivals.Google Scholar
Casson, M. (1990), ‘Entrepreneurship’, in The Concise Encyclopedia of Economics. Available at http://www.econlib.org/library/Enc1/Entrepreneurship.html (accessed 5 January 2016).Google Scholar
Chandler, A. D. Jr [1977](1995), The Visible Hand: The Managerial Revolution in American Business, Cambridge, MA, and London: Harvard University Press.Google Scholar
Coase, R. H. (1974), ‘The Market for Goods and the Market for Ideas’, American Economic Review, 64 (2): 384–91.Google Scholar
Coase, R. H. and Wang, N. (2013), How China Became Capitalist, Basingstoke: Palgrave Macmillan.Google Scholar
Dahl, M. S. and Pedersen, C. Ø. R. (2004), ‘Knowledge Flows through Informal Contacts in Industrial Clusters: Myth or Reality?’ Research Policy, 33 (10): 1673–86.CrossRefGoogle Scholar
Dasgupta, P. and David, P. A. (1994), ‘Toward a New Economics of Science’, Research Policy, 23 (5): 487521.Google Scholar
Foss, K., Foss, N. J. and Klein, P. G. (2007), ‘Original and Derived Judgment: An Entrepreneurial Theory of Economic Organization’, Organization Studies, 28 (12): 1893–912.CrossRefGoogle Scholar
Fuller, L. L. and Winston, K. I. (1978), ‘The Forms and Limits of Adjudication’, Harvard Law Review, 92 (2): 353409.CrossRefGoogle Scholar
Glaeser, E. L., Kallal, H. D., Scheinkman, J. A. and Shleifer, A. (1991), ‘Growth in Cities’, Working Paper No. 3787, Cambridge, MA: National Bureau of Economic Research.Google Scholar
Greif, A. (2006), Institutions and the Paths to the Modern Economy, New York: Cambridge University Press.CrossRefGoogle Scholar
Habermas, J. (1984), Theory of Communicative Action. Vol. 1: Reason and the Rationalization of Society, translated by T. McCarthy, Boston: Beacon Press.Google Scholar
Hayek, F. A. (1945), ‘The Use of Knowledge in Society’, American Economic Review, 35 (4): 519–30.Google Scholar
Hayek, F. A. (1982), Law, Legislation and Liberty, London: Routledge.Google Scholar
Hodgson, G. M. (2015), Conceptualizing Capitalism: Institutions, Evolution, Future, Chicago and London: University of Chicago Press.CrossRefGoogle Scholar
Jacob, M. C. (2006), The Radical Enlightenment: Pantheists, Freemasons and Republicans, 2nd ed., Lafayette: Cornerstone.Google Scholar
Jacobs, J. (1985), Cities and the Wealth of Nations, New York: Vintage Books.Google Scholar
Jones, C. (2005), ‘Growth and Ideas’, in Aghion, P. and Durlauf, S. (eds), Handbook of Economic Growth, Vol. 1, Amsterdam: Elsevier, pp. 1063–111.Google Scholar
Kenney, M. (ed.). (2000), Understanding Silicon Valley: The Anatomy of an Entrepreneurial Region, Stanford: Stanford University Press.Google Scholar
Leighton, W. and López, E. (2012), Madmen, Intellectuals, and Academic Scribblers: The Economic Engine of Political Change, Stanford: Stanford University Press.Google Scholar
Matthews, R. C. (1991), ‘The Economics of Professional Ethics: Should the Professions be more like Business?’ Economic Journal, 101 (407): 737–50.CrossRefGoogle Scholar
McCloskey, D. (2010), Bourgeois Dignity: Why Economics Can't Explain the Modern World, Chicago and London: University of Chicago Press.CrossRefGoogle Scholar
McCloskey, D. and Klamer, A. (1995), ‘One Quarter of GDP is Persuasion’, American Economic Review, 85 (2): 91195.Google Scholar
McQuade, T. J. and Butos, W. N. (2003), ‘Order-Dependent Knowledge and the Economics of Science’, Review of Austrian Economics, 16 (2–3): 133–52.CrossRefGoogle Scholar
Mokyr, J. (2005), ‘The Intellectual Origins of Modern Economic Growth’, Journal of Economic History, 65 (2): 285351.CrossRefGoogle Scholar
Mokyr, J. (2007), ‘The Market for Ideas and the Origins of Economic Growth in Eighteenth Century Europe’, Tijdschrift voor Sociale en Economische Geschiedenis, 4 (1): 338.CrossRefGoogle Scholar
Mokyr, J. (2016), Culture of Growth: Origins of the Modern Economy, Princeton: Princeton University Press.CrossRefGoogle Scholar
Moore, G. and Davis, K. (2004), ‘Learning the Silicon Valley Way’, in Bresnahan, T. and Gambardella, A. (eds), Building High-Tech Clusters: Silicon Valley and Beyond, Cambridge: Cambridge University Press, pp. 739.CrossRefGoogle Scholar
North, D. C. (1990), Institutions, Institutional Change and Economic Performance, Cambridge: Cambridge University Press.CrossRefGoogle Scholar
Ogus, A. (2000), ‘Self-Regulation’, in Bouckaert, B. and de Geest, G. (eds), Encyclopedia of Law and Economics, Volume V. The Economics of Crime and Litigation, Cheltenham: Edward Elgar, pp. 587602.Google Scholar
Ostrom, E. (2005), Understanding Institutional Diversity, Princeton: Princeton University Press.Google Scholar
Phelps, E. (2015), Mass Flourishing: How Grassroots Innovation Created Jobs, Challenge, and Change, Princeton and Oxford: Princeton University Press.Google Scholar
Polanyi, M. (1962), ‘The Republic of Science’, Minerva, 1 (1): 5473.CrossRefGoogle Scholar
Polanyi, M. [1951](1998), The Logic of Liberty, Indianapolis: Liberty Fund.Google Scholar
Polanyi, M. and Prosch, H. (1976), Meaning, Chicago: University of Chicago Press.Google Scholar
Rodrik, D. (2014), ‘When Ideas Trump Interests: Preferences, Worldviews, and Policy Innovations’, Journal of Economic Perspectives, 28 (1): 189208.CrossRefGoogle Scholar
Saxenian, A. L. (1994), Regional Advantage: Culture and Competition in Silicon Valley and Route 128, Cambridge, MA: Harvard University Press.Google Scholar
Shaked, A. and Sutton, J. (1981), ‘The Self-Regulating Profession’, Review of Economic Studies, 48 (2): 217–34.CrossRefGoogle Scholar
Stark, R. (2005), The Victory of Reason: How Christianity Led to Freedom, Capitalism, and Western Success, New York: Random House.Google Scholar
Stephan, P. E. (1996), ‘The Economics of Science’, Journal of Economic Literature, 34 (3): 1199–235.Google Scholar
Tarko, V. (2015), ‘Polycentric Structure and Informal Norms: Competition and Coordination within the Scientific Community’, Innovation: The European Journal of Social Science Research, 28 (1): 6380.Google Scholar
Tunzelmann, G. N. (1995), Technology and Industrial Progress: The Foundations of Economic Growth, Aldershot: Edward Elgar.Google Scholar
Tversky, A. and Kahneman, D. (1974), ‘Judgment under Uncertainty: Heuristics and Biases’, Science, 185 (4157): 1124–31.CrossRefGoogle Scholar
Vanberg, V. J. (2010), ‘The ‘Science-as-Market’ Analogy: A Constitutional Economics Perspective’, Constitutional Political Economy, 21 (1): 2849.CrossRefGoogle Scholar
Walstad, A. (2002), ‘Science as a Market Process’, Independent Review, 7 (1): 545.Google Scholar
Weber, M. [1923](1927), General Economic History, transl. Knight, F. H., New York: Greenberg.Google Scholar
Williamson, O. E. (1985), The Economic Institutions of Capitalism: Firms. Markets, Relational Contracting, New York: Simon & Schuster.Google Scholar
2
Cited by

Send article to Kindle

To send this article to your Kindle, first ensure no-reply@cambridge.org is added to your Approved Personal Document E-mail List under your Personal Document Settings on the Manage Your Content and Devices page of your Amazon account. Then enter the ‘name’ part of your Kindle email address below. Find out more about sending to your Kindle. Find out more about sending to your Kindle.

Note you can select to send to either the @free.kindle.com or @kindle.com variations. ‘@free.kindle.com’ emails are free but can only be sent to your device when it is connected to wi-fi. ‘@kindle.com’ emails can be delivered even when you are not connected to wi-fi, but note that service fees apply.

Find out more about the Kindle Personal Document Service.

The intellectual orders of a market economy
Available formats
×

Send article to Dropbox

To send this article to your Dropbox account, please select one or more formats and confirm that you agree to abide by our usage policies. If this is the first time you use this feature, you will be asked to authorise Cambridge Core to connect with your <service> account. Find out more about sending content to Dropbox.

The intellectual orders of a market economy
Available formats
×

Send article to Google Drive

To send this article to your Google Drive account, please select one or more formats and confirm that you agree to abide by our usage policies. If this is the first time you use this feature, you will be asked to authorise Cambridge Core to connect with your <service> account. Find out more about sending content to Google Drive.

The intellectual orders of a market economy
Available formats
×
×

Reply to: Submit a response

Please enter your response.

Your details

Please enter a valid email address.

Conflicting interests

Do you have any conflicting interests? *