accounts: a newsletter of economic sociology Official publication of the Economic Sociology Section of the American Sociological Association Edited by Kieran Healy (Arizona) and Alexandra Kalev (Princeton) Vol. 5/2, Spring 2005 This issue leads off with some thoughts on the future role of economic sociology from Section Chair Nicole Woolsey Biggart. We then have three pieces following up on Marc Ventresca and Peter Levin’s article from the last issue: Jens Beckert and Charles Smith reply, and Ventresca and Levin respond. Maja Magdalena Biernacka gives us a research report from Poland and we preview the Economic Sociology sessions from the upcoming ASA meetings. This issue marks the end of the editors’ second term at the helm of accounts: we thank everyone for their lively contributions, and hope that our readers will continue to submit essays and opinion pieces to our successors! — The Editors. From the Chair Nicole Woolsey Biggart of data, failure to formulate and test hypothe- ses, and ahistoricism. We got excited and en- Twenty years ago economic sociology was a couraged ourselves to study their territory — stance more than an area of sociological in- the economy — using our many methods, qual- quiry. Sociologists were united more by their ity data sources, and historical sensibilities. opposition to the intellectual imperialism of Our journals and seminars are evidence of how economics which was extending its domain into far we have come. studies of the family, education, and other What I don’t think we anticipated a gener- topics historically the territory of sociology. ation ago was the move of economic sociology Economists were not acknowledging the contri- into the undergraduate classroom. I am heart- butions of sociologists, indeed hardly acknowl- ened and a little amazed at the spread of lib- edged we existed. eral arts programs that take a broad view of the Economists, as a publicly visible and pow- economy, markets, organizations, and business erful discipline, may not have cared what soci- now being offered to undergraduates. These ologists thought, but we certainly cared about programs vary, but for the most part they are them. Modern economic sociology was spurred designed for students seeking a broader educa- on in important ways by our largely one-sided tion than popular business or economics ma- conversation with economics. We attacked jors offer, although they typically include the their methodological individualism, their lack prerequisites for graduate business school ad- Contents of this issue: Smith responds to Ventresca and Levin . 4 Reply from Ventresca and Levin . 5 From the Chair . 1 Econ Soc at the asa ........... 6 Beckert responds to Ventresca and Levin 3 Consulting Cadre Dilemmas in Poland . 7 Vol. 5/2, Spring 2005 2 missions, such as microeconomics, statistics, ogy could extend itself into the domain of pub- and calculus. lic discourse and policy analysis in examining UC Davis started the Organization Studies labor markets, the global economy, marketiza- program over a decade ago, and while it is a so- tion, and all manner of economic life. There ciology major, it draws liberally from history, was little in Washington or at the World Bank anthropology, economics, and psychology for that we couldn’t contribute to. We would have its coursework. It gives a student interested in a President’s Council of Socio-Economic Advi- pursuing a business career a broad understand- sors! ing of the social underpinnings of capitalism, Although the White House hasn’t called me economic development, globalization, and firm yet, there is a growing body of economic soci- activity. ology from institutional, network, and cultural Duke University’s Markets and Manage- perspectives that has intellectual and policy im- ment Program, directed by sociologist Ken portance. A few of us have participated in Na- Spenner, is Duke’s largest certificate program tional Academy of Science committees and on and has 500 undergraduates enrolled and over other public bodies that are interested in our al- 2000 alumni. It draws on the strengths of ternative views on economic development, la- Duke’s economic sociology faculty and includes bor markets, and environmental issues. With courses in the Chinese Economy,and Organiza- time, and perhaps our own desire to see it hap- tion and Global Competition. pen, economic sociologists routinely might have Linda Stearns was recruited recently by a seat at the table at policy discussions. Do we Southern Methodist University to establish a really want to play this role? How could we get Markets and Culture program in sociology that involved in think tanks and other policy insti- promotes the study of the social bases of eco- tutions? I think this would be a great topic for nomic behavior. SMU students are required to our section to discuss, and I invite you to write take a foreign language and are encouraged to to the editors of accounts with your views. study abroad. While I would very much like a seat at White Cornell undergraduate sociology majors House social and economic policy discussions, can focus on economic sociology, and Brown I would consider it a real victory if at some fu- University is in the process of establishing ture moment those discussions were guided by a multi-disciplinary Commerce, Organization a former sociology undergraduate who under- and Entrepreneurship program. A generation stood economic activity in a broadly social sci- of students is learning a new way to think about ence way, someone who had sat in on a couple money, markets, and economic life. of our economic sociology courses. In our early enthusiasm as an area of in- Nicole WoolseyBiggart is Professor of Man- tellectual inquiry twenty years ago I remember agement and Sociology at the University of Cal- much discussion about how economic sociol- ifornia, Davis. Accounts Vol. 5/2, Spring 2005 3 Uncertainty and Ambiguity in Markets: A response to Ventresca and Levin Jens Beckert (Dequech 2001; Beckert/Dequech forthcoming) is characterized by the possibility of creativity In their article “Information and Ambiguity and non-predetermined structural change. The in Markets,” Marc J. Ventresca and Peter Levin list of possible events is not predetermined or (accounts Vol. 5/1, Fall 2004) point to a re- knowable ex ante, as the future is yet to be cre- cently developing strand of work in economic ated. Ambiguity, as defined by Ventresca and sociology: The concern with actor’s categories, Levin, can be seen as a special case of the dou- criteria and conventions by which ambiguous ble contingency type of uncertainty: Actors act situations become actionable. This work on according to a plurality of logics that are possi- meaning producing - and thereby also value- bly even contradictory,making it impossible for producing - categorization I take as an impor- Alter Ego to predict Ego’s course of action. tant and fascinating field of study for economic For this type of uncertainty, however, the sociology. What I take issue with is the au- same holds true as does for other types of un- thors’ proposed juxtaposition of the concept certainty: Only by reducing ambiguity (uncer- of ambiguity to an approach in economic so- tainty) through networks, institutions, power, ciology that starts from the problem of uncer- norms, or cognitive scripts can actors find a ba- tainty. According to the two authors the work sis from which to assess the situation and be- reviewed by them would “turn attention from come willing to engage in market exchanges uncertainty reduction” (p.2). Contrary to this where they have to put their money at risk. Cat- position I argue that the concern with “cate- egorization, conventions and orders of worth gory infrastructures” (p.2) can very well be un- are forms of cognitive scripts that function as derstood as a special case within a paradigm mechanisms of reduction of uncertainty. that sees the handling of uncertainty as the cru- The correspondence of the work on cat- cial vantage point of economic sociology (Beck- egories, criteria and conventions with uncer- ert 1996, 2002). tainty as a paradigmatic vantage point of eco- Uncertainty, contrary to risk, refers to situ- nomic sociology becomes also apparent from ations where intentionally rational actors can- some of the works discussed by Ventresca and not calculate probabilities of outcomes. This Levin themselves. Olav Velthuis, for instance, brings into question the maximizing assump- explains the market anomaly that galleries sell tion of economic theory since actors do not all paintings of the same size of an artist for the know unambigously how to allocate their re- same price, despite quality differences that are sources to obtain optimal outcomes. Uncer- known to the artist and to the gallery, by the tainty has two prime sources: it can stem from need to reduce uncertainty. If galleries would unpredictable changes in the natural or insti- act differently this “would create a sense of dis- tutional environment or it can have its ori- order in a market where uncertainty already gins in the unforseeable choices of other actors reigns” (Velthuis 2003: 194). The economics of (double contingency). Although uncertainty is convention (reviewed in Biggart/Beamish 2003) closely linked to the issue of information, not identifies the pragmatic task of any economy in all uncertainty can be undone by the search for the need of coordination of action. Economic further information. Fundamental uncertainty exchange has its precondition in interpretations Accounts Vol. 5/2, Spring 2005 4 that “lead to a sort of ’agreement’ about what References is to be done - in the sense that what each per- Beckert, Jens. 1996. “What is sociological about economic sociology? son does meets the expectations of the others on Uncertainty and the embeddedness of economic action.” Theory and Society 25: 803-840. whom he or she depends” (Storper/Salais 1997: Beckert, Jens.