Download full text
(612.1Kb)
Citation Suggestion
Please use the following Persistent Identifier (PID) to cite this document:
https://doi.org/10.12759/hsr.44.2019.1.160-187
Exports for your reference manager
Why Do Markets Change? Some Conventionalist Considerations on the Stability and Dynamic of Markets
Warum ändern sich Märkte? Einige konventionentheoretische Überlegungen zur Stabilität und zur Dynamik von Märkten
[journal article]
Abstract This paper wants to develop a dynamic approach of markets. We take the economics of conventions (EC) as the basic theoretical framework and expand it regarding concepts, which help to answer the question under which circumstances markets are either (persistently) stable or (radically) dynamic. We in... view more
This paper wants to develop a dynamic approach of markets. We take the economics of conventions (EC) as the basic theoretical framework and expand it regarding concepts, which help to answer the question under which circumstances markets are either (persistently) stable or (radically) dynamic. We introduce EC as a European research program focusing on uncertainty as the fundamental problem on markets. Then we develop the concept of market regimes to draw on some main pillars of the EC and at the same time to focus attention more, as it is usually the case, on the question why conventions are stable and why they change. We argue that usually markets are relatively stable; however, crises, exogenous factors, and divergent interpretations of quality on the individual level (dissatisfaction/critique of key actors) lead to change of conventions and consequently changing market regimes. Analytically, the existing regime fails to overcome uncertainty and establish market coordination. The empirical part of the paper illustrates the theoretical concepts with the case of a regional wine market where radical change led to the fall of the market convention and the rise of the domestic convention.... view less
Keywords
Austria; Styria; market mechanism; convention; agricultural commodities market; wine; status insecurity; economic sociology; qualitative interview; market power; innovation
Classification
National Economy
Free Keywords
Market dynamics; market stability; economics of convention; quality conventions; market change; critique; innovation; uncertainty; market crises; Styrian wine market
Document language
English
Publication Year
2019
Page/Pages
p. 160-187
Journal
Historical Social Research, 44 (2019) 1
Issue topic
Markets, Organizations, and Law - Perspectives of Convention Theory on Economic Practices and Structures
ISSN
0172-6404
Status
Published Version; peer reviewed