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Theory, Reality, and Performativity in Markets

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  • Patrik Aspers

Abstract

. The purpose of this article is to analyze the relation between scientific knowledge in the form of theories and the world that such theories are about. The focus is on market theories. I argue that everyday knowledge, conceptualized using the notion of “lifeworld,” is the bedrock of scientific knowledge. I also make two distinctions, one between types of markets and one between principles of order in markets. There are two different types of markets, fixed‐role markets and switch‐role markets, and no existing theory can be used to explain both of them. In fixed‐role markets, such as a producer market of garments, actors are identified as either sellers or buyers. In switch‐role markets, such as the stock exchange market or currency market, actors are not identified with one role. The other distinction is between standard and status markets. In a status market, order is maintained because the identities of actors on both sides of the market are ranked according to status, which is a more entrenched social construction than the commodity traded in the market. In a market characterized by standards, the situation is reversed: the commodity is a more entrenched social construction than the social status of actors in the market. These distinctions are the backdrop of my analysis of the idea that markets are performed. It is concluded that the performativity approach is useful today for analyzing switch‐role markets. A further conclusion is that neoclassical economic theory can be used in understanding switch‐role markets, but not fixed‐role markets.

Suggested Citation

  • Patrik Aspers, 2007. "Theory, Reality, and Performativity in Markets," American Journal of Economics and Sociology, Wiley Blackwell, vol. 66(2), pages 379-398, April.
  • Handle: RePEc:bla:ajecsc:v:66:y:2007:i:2:p:379-398
    DOI: 10.1111/j.1536-7150.2007.00515.x
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    1. Miller, Daniel, 2005. "Reply to Michel Callon," economic sociology. perspectives and conversations, Max Planck Institute for the Study of Societies, vol. 6(3), pages 3-13.
    2. Swedberg, Richard, 2004. "On the present state of economic sociology (1990s)," economic sociology. perspectives and conversations, Max Planck Institute for the Study of Societies, vol. 5(2), pages 2-17.
    3. Callon, Michel, 2005. "Why virtualism paves the way to political impotence: A reply to Daniel Miller's critique of "The laws of the market"," economic sociology. perspectives and conversations, Max Planck Institute for the Study of Societies, vol. 6(2), pages 3-20.
    4. Aspers, Patrik, 2005. "Status Markets and Standard Markets in the Global Garment Industry," MPIfG Discussion Paper 05/10, Max Planck Institute for the Study of Societies.
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    2. Castelle, Michael, 2016. "Marketplace platforms or exchanges? Financial metaphors for regulating the collaborative economy," economic sociology. perspectives and conversations, Max Planck Institute for the Study of Societies, vol. 17(3), pages 14-26.
    3. Castelle, Michael & Millo, Yuval & Beunza, Daniel & Lubin, David C., 2016. "Where do electronic markets come from? Regulation and the transformation of financial exchanges," LSE Research Online Documents on Economics 68650, London School of Economics and Political Science, LSE Library.
    4. Hukkinen, Taneli & Mattila, Juri & Ilomäki, Juuso & Seppälä, Timo, 2017. "A Blockchain Application in Energy," ETLA Reports 71, The Research Institute of the Finnish Economy.
    5. Roscoe, Philip & Willman, Paul, 2021. "Flaunt the imperfections: information, entanglements and the regulation of London’s Alternative Investment Market," LSE Research Online Documents on Economics 114480, London School of Economics and Political Science, LSE Library.
    6. Patrik Aspers, 2010. "Alfred Marshall and the Concept of Class," American Journal of Economics and Sociology, Wiley Blackwell, vol. 69(1), pages 151-165, January.
    7. Pinzur, David, 2021. "Infrastructure, ontology and meaning: the endogenous development of economic ideas," LSE Research Online Documents on Economics 110932, London School of Economics and Political Science, LSE Library.
    8. Sam Bliss, 2019. "The Case for Studying Non-Market Food Systems," Sustainability, MDPI, vol. 11(11), pages 1-30, June.
    9. Kieron Flanagan & Elvira Uyarra & Iris Wanzenböck, 2021. "Towards a problem-oriented regional industrial policy: possibilities for public intervention in framing, valuation and market creation," Working Papers 52, Birkbeck Centre for Innovation Management Research, revised Apr 2021.

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