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Part 2 - Organization in and around Markets

Published online by Cambridge University Press:  11 July 2019

Göran Ahrne
Affiliation:
Uppsala Universitet, Sweden
Nils Brunsson
Affiliation:
Uppsala Universitet, Sweden
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Summary

Markets and organizations are often contrasted with each other and are sometimes even treated as opposites. But they share at least one characteristic: They are both organized. Many markets have been created by organization, and virtually all markets are organized to a greater or lesser extent; for markets to function according to the normative ideals of economists, a high degree of organization is necessary. In this chapter, the organization of markets is contrasted to other ways by which markets are formed – mutual adaptation among sellers and buyers and institutions. Organization adds substantially to the uncertainty that has been seen as a typical trait of markets. The chapter describes how different combinations of organizational elements are used in different markets. In addition to sellers and buyers, there are two types of market organizers: ‘profiteers’, who organize in order to benefit their own business; and ‘others’, who claim that they organize for the benefit of other people or of everyone. Market organization is the basis for a form of democracy on the global level – a form other than that tied to a formal organization, such as a state.

Type
Chapter
Information
Organization outside Organizations
The Abundance of Partial Organization in Social Life
, pp. 113 - 188
Publisher: Cambridge University Press
Print publication year: 2019

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