BEYOND THE MARKETPLACE Rethinking Economy and Society SOCIOLOGY AND ECONOMICS Controversy and Integration An Aldine de Gruyter Series of Texts and Monographs Series Editors Paula England, Department of Sociology, University of Arizona, Tucson George Farkas, School of Social Sciences, University of Texas, Dallas Kevin Lang, Department of Economics, Boston University Beyond the Marketplace: Rethinking Economy and Society Roger Friedland and A.F. Robertson (eds.) Social Institutions: Their Emergence, Maintenance and Effects Michael Hechter, Karl-Dieter Opp, and Reinhard Wippler (eds.) BEYOND THE MARKETPLACE Rethinking Economy and Society Edited by Roger Friedland and A. F. Robertson ABOUT THE EDITORS Roger Friedland is Professor of Sociology at the University of California, Santa Barbara. He is currently studying conflicts over the organization and meaning of time and space in Jerusalem (with Richard Hecht) and is devel- oping a comparative study of corporate geographies in market economies (with Guido Martinotti). A. F. (Sandy) Robertson is Professor of Anthropology at the University of California, Santa Barbara. Until 1985 he taught Development Studies and was Director of the African Studies Centre at Cambridge University. First published 1990 by Aldine de Gruyter Published 2019 by Routledge 52 Vanderbilt Avenue, New York, NY 10017 Routledge is an imprint of the Taylor & Francis Group, an informa business Copyright© 1990 by Taylor & Francis All rights reserved. No part of this book may be reprinted or reproduced or utilised in any form or by any electronic, mechanical, or other means, now known or hereafter invented, including photocopying and recording, or in any information storage or retrieval system, without permission in writing from the publishers. Notice: Product or corporate names may be trademarks or registered trademarks, and are used only for identification and explanation without intent to infringe. Library of Congress Cataloging-in-Publication Data Beyond the marketplace: rethinking economy and society/edited by Roger Friedland and A. F. Robertson. p. cm.-(Sociology and economics) Includes bibliographical references. ISBN 0-202-30370-5.-ISBN 0-202-30371-3 (pbk.) 1. Capitalism-Social aspects. 2. Political science-Economic aspects. 3. Family-Economic aspects. 4. Labor market. 5. Neoclassical school of economics. I. Friedland, Roger. II. Robertson, A. F. Ill. Series. HBS01.B49 1990 306.3-dc20 89-77722 CIP ISBN 13: 978-0-202-30371-0 (pbk) CONTENTS PART I. INTRODUCTION 1. Beyond the Marketplace Roger Friedland and A. F. Robertson 3 PART II. INDIVIDUALS AND MARKETS 2. Rethinking Rational Choice Robert H. Frank 53 3. The Old and the New Economic Sociology: A History and an Agenda Mark Granovetter 89 4. Cultural Aspects of Economic Action and Organization Paul DiMaggio 113 5. The Idea of Economy: Six Modern Dissenters Keith Hart 137 PART III. SOCIETY AS MARKET 6. Markets, Marriages, and Other Mates: The Problem of Power Paula England and Barbara Stanek Kilbourne 163 7. Class Conflict as a Dynamic Game Michael Wallerstein 189 v VI Contents PART IV. MARKETS IN SOCIETY 8. A Complex Relationship: Family Strategies and the Processes of Economic and Social Change Tamara K. Hareven 215 9. Explaining the Politics of the Welfare State or Marching Back toward Pluralism? Frances Fox Piven and Richard A. Cloward 245 10. States, Labor Markets, and Life Cycles John Myles 271 PART V. MARKETS AS SOCIETY 11. The Transformation of Organizational Forms: How Useful Is Organization Theory in Accounting for Social Change? Walter W. Powell 301 12. Once More into the Breach between Economic and Cultural Analysis George E. Marcus 331 About the Authors 353 Index 357 I INTRODUCTION C\ Taylor & Francis � Taylor & Francis Group http:/ /taylora ndfra ncis.com 1 Beyond the Marketplace_____ Roger Fried I and and A. F. Robertson1 This volume brings together social scientists who have been rethinking the relationship between economy and society. Although they range in the­ oretical taste from marxistto marginalist, structuralist to individualist, mate­ rialist to idealist, they share a critical interest in the market. The desire to go beyond conventional understandings of the market means, for some of our authors, a reexamination of assumptions about the behavior of individuals in economic transactions. For others, it means extending the logic of market exchange to other arenas such as the household, the political party, or the state. To a third group, it means understanding the ways in which these other institutions shape the operations of markets. And to a fourth, it means in­ terpreting markets themselves as social and cultural institutions from which the logic of individual exchange derives. Although these essays converge on the market, there is little agreement on what markets are and do. No doubt we all gravitate to the marketplace be­ cause that is where the social and economic action is, the common em­ pirical ground between contesting theories about the distribution of goods and services. Our focus on the market also reflects the success of one discipline, and of one doctrine within that discipline, neoclassical econom­ ics, in asserting the primacy of the market as the most important economic institution, in constituting it as object of enquiry, and in monopolizing its analysis. As a result, this resurgence of interest in the relationship between markets and society appears as a movement between an economic core and a social periphery. Our introduction to this volume is an attempt to dislodge this center of gravity and to rechart the territory of economy and society. In editing this collection we have grouped our authors, not according to discipline, but according to our perception of two countervailing trajectories into and out of the marketplace: the pursuit of economic meaning in society and the pursuit of social meaning in the economy. We begin with four who challenge the behavioral assumptions of neoclassical economics by exploring the psycho­ logical, social, and cultural dispositions of individual behavior in markets. 3