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How are markets made?

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  • Aspers, Patrik

Abstract

The purpose of this paper is to analyze the making of markets. The paper identifies two ideal-typical processes in which markets are made - organized making and spontaneous making - which are often combined in reality. Organized making is defined as a process in which at least two actors come together and decide on the order of the market. There are two ways of organized making of markets, called 'state-governed market making' and 'self-governed market making.' Spontaneous making is defined as a process in which the market is an unintended result of actors' activities. The attention sociologists have paid to the issue of market making has been directed largely at organized market making. This paper develops a sociological approach that integrates both spontaneous and organized market making, and identifies three phases of market making. This involves a discussion of empirical cases, and seven hypotheses are presented that make predictions for the two types of market making. The paper provides theoretical tools for studying the making of markets in history, as well as in our own time. Finally, a number of conditions are presented that must be in place if there is to be a market.

Suggested Citation

  • Aspers, Patrik, 2009. "How are markets made?," MPIfG Working Paper 09/2, Max Planck Institute for the Study of Societies.
    • Handle: RePEc:zbw:mpifgw:092
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    Cited by:

    1. Baker, C. Richard & Biondi, Yuri & Zhang, Qiusheng, 2010. "Disharmony in international accounting standards setting: The Chinese approach to accounting for business combinations," CRITICAL PERSPECTIVES ON ACCOUNTING, Elsevier, vol. 21(2), pages 107-117.
    2. Reinke, Rouven, 2021. "Das Verhältnis von neuer Wirtschaftssoziologie und moderner Volkswirtschaftslehre: Möglichkeiten und Grenzen einer soziologischen Kritik am (neoklassischen) Mainstream," ZÖSS-Discussion Papers 83, University of Hamburg, Centre for Economic and Sociological Studies (CESS/ZÖSS).
    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. Möllering, Guido, 2010. "Collective market-making efforts at an engineering conference," MPIfG Discussion Paper 10/2, Max Planck Institute for the Study of Societies.
    5. Akyel, Dominic, 2014. "Ökonomisierung und moralischer Wandel: Die Ausweitung von Marktbeziehungen als Prozess der moralischen Bewertung von Gütern," MPIfG Discussion Paper 14/13, Max Planck Institute for the Study of Societies.

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