What is the role of markets in economic sociology?

1 Market as a social construction

One of the main insights of economic sociology is that markets are not natural or inevitable, but rather the result of social processes and decisions. Markets are socially constructed, meaning that they depend on shared norms, rules, meanings, and networks that enable and constrain economic actors. For example, the value of money, the legality of contracts, the reputation of sellers, and the preferences of buyers are all influenced by social factors. Economic sociologists examine how markets are created, maintained, and changed by various actors and institutions, such as states, corporations, consumers, activists, and intermediaries.

3 Market as a culture

A third dimension of markets in economic sociology is that they are not rational or calculative, but rather expressive and symbolic. Markets are cultures, meaning that they involve values, beliefs, emotions, and identities that motivate and justify economic behavior. For example, the choices, tastes, preferences, and satisfaction of consumers and producers are not based on objective utility or quality, but also on subjective meanings and narratives. Economic sociologists explore how culture influences and is influenced by market phenomena, such as consumption, production, branding, and advertising.

5 Market as a system

A fifth way of looking at markets in economic sociology is that they are not isolated or static, but rather interconnected and dynamic. Markets are systems, meaning that they are composed of multiple elements and levels that interact and influence each other. For example, the demand, supply, price, and quality of a product or service are not fixed or given, but vary according to the conditions and changes in other markets and sectors. Economic sociologists study how systems shape and are shaped by market phenomena, such as globalization, diversification, crisis, and resilience.

6 Market as a problem

A sixth and final view on markets in economic sociology is that they are not benign or optimal, but rather problematic and contested. Markets are problems, meaning that they generate and face challenges and dilemmas that require solutions and responses. For example, the efficiency, growth, innovation, and diversity of markets are often accompanied by inequality, instability, exploitation, and environmental degradation. Economic sociologists examine how problems arise and are addressed in and by markets, such as regulation, redistribution, governance, and ethics.

7 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?