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Begin New Search Topic Capitalism Content Type Working Paper Publishing Institution Max Planck Institute for the Study of Societies Publication Year within 3 Years

1. The Instability of Preferences: Uncertain Futures and the Incommensurable and Intersubjective Nature of Value(s

Author:
Richard Bronk and Jens Beckert
Publication Date:
03-2022
Content Type:
Working Paper
Institution:
Max Planck Institute for the Study of Societies
Abstract:
The default assumption of standard economics is to treat preferences as exogenously ‘given’, consistent with one another, ‘revealed’ by past choices, and context independent. There has been increased interest recently (within behavioural economics) in the impact of inconsis- tent or irrational preferences and (more broadly) in dynamic and endogenous preferences. This paper builds on these challenges to standard assumptions by analysing the pivotal role of three aspects of preference formation in explaining capitalist dynamics and market insta- bility. These are the constant creation of new preferences and the indeterminacy of choice sets in the context of widespread product innovation; the moral indeterminacy implied by conflicting and incommensurable social norms attaching to market goods where there is no single scale of value and hence no unique set of rational trade-offs; and, lastly, the con- tingent social and market construction of the product differentiation, quality attribution, and value assessments central to preference formation. The paper concludes by considering implications for economics as a discipline.
Topic:
Economics, Capitalism, Norms, and Social Order
Political Geography:
Global Focus

2. Private Insurance, Public Welfare, and Financial Markets: Alpine and Maritime Countries in Comparative-Historical Perspective

Author:
A. van der Heide and S. Kohl
Publication Date:
01-2022
Content Type:
Working Paper
Institution:
Max Planck Institute for the Study of Societies
Abstract:
Contemporary capitalist societies use different institutions to manage economic risks. While different public welfare state and financial institutions (banks, capital markets) have been studied across coordinated and liberal market economies, this paper adds the private insurance sector to the study of countries’ security arrangements, following up on Michel Albert’s classical distinction between Alpine and Maritime insurance cultures. Building on extensive new insurance data collections (1880–2017) and institutional analysis, this paper corroborates the long-run historical existence of two worlds of private insurance. Maritime countries (USA, GBR, CAN) developed much bigger life and non-life insurance earlier, with no state-associated insurance enterprises and riskier investments steered towards financial markets. Alpine insurance (AUT, DEU, CHE), by contrast, was initially smaller, with strong state involvement, a significant reinsurance tradition and relatively heavy investments in mortgages and property, due to economic and financial backwardness. We argue that the larger and more “Maritime” the insurance sector, the more it made welfare states liberal and securities markets large. Insurance is thus a hidden factor for countries’ varieties of capitalism and world of welfare. The recent convergence on the Maritime model, however, implies that the riskier and risk-individualizing type of private insurance has added to privatization and securitization trends everywhere.
Topic:
Development, Capitalism, Finance, and Welfare
Political Geography:
Global Focus

3. From the pandemic to a reorganization of time? Time sociological perspectives on the relationship between temporality, economy and state.

Author:
Lisa Suckert
Publication Date:
12-2021
Content Type:
Working Paper
Institution:
Max Planck Institute for the Study of Societies
Abstract:
Does the pandemic foreshadow a more sustainable order of time? Can the crisis allow for a departure from the capitalist time regime? This article looks at the Covid-19 pandemic and respective state interventions from a perspective inspired by the sociology of time and eco- nomic sociology. It shows that the social and economic disruptions attributed to the pan- demic can be understood as the result of a collision of opposing temporal logics. In order to contain the pandemic, the state initially enforced ways of dealing with time that contradict the capitalist time regime and its major principles – commodification and rational use of time, acceleration, and appropriation of the future. This “return of the state” as a power governing its citizens’ time does not, however, in itself imply a “new temporal order” that goes beyond the current state of emergency. The article shows that those state interventions intended not to contain the virus but to mitigate its social and economic consequences can often be understood as attempts to mediate between different temporal logics and cushion their collision. They essentially facilitate a “return” to the capitalist time regime and thus perpetuate time-related inequalities.
Topic:
Capitalism, Inequality, Pandemic, COVID-19, and State Capitalism
Political Geography:
Global Focus