IDEAS home Printed from https://ideas.repec.org/h/spr/eccchp/978-3-642-35125-9_20.html
   My bibliography  Save this book chapter

Markets and Organizations Individualism and Economic Theory

In: Long Term Economic Development

Author

Listed:
  • Maria Brouwer

    (University of Amsterdam)

Abstract

Economic theory depicts markets and organizations as opposite allocation mechanisms. Market allocation is based on mobility and organization on instruction. The paper argues that markets and organizations are complements in dynamic economies. A diversity of organizations gives meaning to mobility of capital and labor as it allows individual valuations of people and projects. This differs from both perfect competition and principal agent theory that do not allow for diversity among firms. Individualism spurs innovation, because it allows different views on future values. Investment outcomes will differ from expectation, but will strike stable expectation equilibrium, if diversity of opinion prevails. Collective opinion, by contrast, arrests productivity growth and causes booms and busts. The rise of individualism in late medieval England and the concept of the individualized corporation in our days are discussed. The effects of collective opinion on financial markets are sketched.

Suggested Citation

  • Maria Brouwer, 2013. "Markets and Organizations Individualism and Economic Theory," Economic Complexity and Evolution, in: Andreas Pyka & Esben Sloth Andersen (ed.), Long Term Economic Development, edition 127, pages 439-460, Springer.
    • Handle: RePEc:spr:eccchp:978-3-642-35125-9_20
    DOI: 10.1007/978-3-642-35125-9_20
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:eccchp:978-3-642-35125-9_20. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.