Introduction to the symposium on institutional analysis, market processes, and interdisciplinary social science

Heterodox economic approaches such as Austrian economics and market process analysis rely upon a less formalistic approach to rationality than neoclassical frameworks. We argue such looser formalism provides a unique opportunity for interdisciplinary engagement to investigating and understanding social institutions, outcomes and complex phenomenon. This introduction briefly summarizes the contents of this invited issue as effective examples of such interdisciplinarity.

Israel Kirzner’s Presence in the History of Economic Thought: A Review of His Professional Engagement in Honor of His 91 Years

This paper analyzes the presence of Israel Kirzner in the History of Economic Thought and focusing on his professional engagement with other economists. His academic trajectory is contextualized on three milestones of the recent history of the Austrian School. The first one is the ending of the socialist economic calculation debate, when the Austrian was considered unconvincing due to the economics’ shift to a general equilibrium model of the economy; in the aftermath of the debate, Kirzner entered at the New York University’s PhD program and was mentored by Ludwig von Mises. At this point, Kirzner started to develop his ideas on entrepreneurship and to aim an audience wider than his Austrian peers. The second is the Austrian Revival in the 1970s, in which the prestigious recovery stage of the Austrian School, thanks to Kirzner assuming a leadership role in the process. The third is in the 1980s, when a more consolidated Austrian School attempts to define itself, as Kirzner retains an Austrian vision founded on the synthesis between Mises and Hayek. It is concluded that Kirzner’s professional engagement was fundamental in the recovery of Austrian theory. He communicated Austrian ideas to a wider audience and synthetized Misesian and Hayekian proposals on the market process. These efforts allow us to recognize a Kirznerian view of the Austrian School, established with the traditional microeconomic theory, but including greater subjectivity on the interpretation of economic phenomena, becoming a more general, more realistic theory.

Principles of Sustainable Economic Growth and Development: A Call to Action in a Post-COVID-19 World

The analysis of sustainable economic growth and development often focuses on how to control the market process through coercive state intervention. While state interventionism may play a significant role in countries’ progress, entrepreneurship is the driving force behind sustainable growth and development. Entrepreneurship is the people’s judgment on ideas, plans, and projects, which promises profit in uncertain times. Its effects are the creation and transmission of information and social coordination as a dynamic process of identifying and solving human problems. Sustainable development is the widening range of entrepreneurial alternatives open to people, and sustainable growth is a phase of sustainable development that depends on genuine savings to finance increasingly capital-intensive production structures. The degree to which people are entrepreneurs and the direction genuine savings take depend on institutional arrangements. Some institutions are more conducive to sustainable growth and development than others. After reviewing principles of growth and development sustainability, how coercive state intervention influences economic performance is discussed, proposing novel policy conclusions and research avenues to cultivate entrepreneurship and genuine savings in a post-COVID-19 world.

Private Property Rights, Dynamic Efficiency and Economic Development: An Austrian Reply to Neo-Marxist Scholars Nieto and Mateo on Cyber-Communism and Market Process

The Austrian school economics and neo-Marxist theories both have been reviving in recent years. However, the current academic discussion lacks a debate between two schools of economics with diametrically opposed views. This paper is the first and an initial Austrian challenge to Neo-Marxist scholars Nieto and Mateo’s argumentation that cyber-communism and the Austrian theory of dynamic efficiency are consistent to enhance economic development. Their argument focuses on two issues: (a) the existence of circular reasoning in the Austrian theory of dynamic efficiency, and (b) dynamic efficiency and full economic development could be strongly promoted in a socialist system through new information and communication technologies (ICT) and the democratization of all economic life. While cyber-communism refers to cyber-planning without private property rights through ICT, dynamic efficiency refers to the entrepreneurs’ creative and coordinative natures. In this paper, first, we argue that the hypothesis that dynamic efficiency and cyber-communism is not compatible. Contrary to the above cyber-communist criteria, the Austrian theory of dynamic efficiency argues that to impede private property rights is to remove the most powerful entrepreneurial incentive to create and coordinate profit opportunities, the entrepreneurial incentives to create and coordinate profit opportunities are removed to identify human problems and the ability and willingness to solve them. Second, we argue that the cyber-communism system is inconsistent with economic development. In this regard, we explain how the institutional environment can cultivate or stifle dynamic efficiency and economic development. Having briefly outlined the central argument of Nieto and Mateo, we examine the institutional arrangement supporting cyber-communism. After that, we evaluate the implications of cyber-communism in the dynamic efficiency process. It becomes manifest that Nieto and Mateo’s accounts are too general to recognize the complexity of how economic development works.

CULTURAL JUSTICE, BASIC INCOME AND THE CAPABILITY APPROACH

In this paper, we elaborate on a theory of an evolutionary political economy capable of accommodating the issue of cultural justice by taking seriously the redistribution–recognition dilemma, a normative analysis of which has been put forth by Nancy Fraser. While accepting Fraser’s articulation of the dilemma, we resist her concluding that Sen’s capability approach is insensitive to cultural justice or the recognition of difference. There is no automatic guarantee, yet an intermediate theory of recognition or cultural justice could in theory be brought to bear on what is, after all, ‘a framework’. We argue that Fraser’s analysis is well suited to be such an intermediate theory, and propose a theoretical device for an evolutional perspective on redistribution and recognition. We concentrate on identifying the stage of the market process at which policy intervenes to remedy redistribution, and the stage of the communication process at which policy intervenes to remedy recognition. Interventions at the entrance stages of both processes are relatively effective and one possibility for such an intervention is to propose Basic Income, which would make it not inconsistent with the capability approach, even though this approach neither directly suggests such a policy not excludes others.

Millennials and repurchasing behaviour: a collectivist emerging market

PurposeThis study explains how retailers can use the knowledge function of attitudinal theories to understand how millennials in a collectivist emerging market, trade-off between a satisfactory customer service experience versus price when repurchasing a smartphone.Design/methodology/approach356 usable questionnaires (86% response rate) were collected and analysed using structural equation modelling (SEM), AMOS.FindingsMillennials in Vietnam tend to adopt an individualistic approach when repurchasing a smartphone and utilise their knowledge of the product. However, they value personalised customer service that is specific to their needs, especially interactions with sales staff that raises their confidence and self-esteem. The unique interaction allows authorised retailers to distinguish themselves from unauthorised retailers. Repurchase behaviour is encouraged by low uncertainty avoidance in conjunction with price sensitivity; and the desire to be seen as achieving a high social status.Research limitations/implicationsThe data for the study was collected in Hanoi, the main city of Vietnam and is representative only of urban-based millennials.Practical implicationsRetailers considering entering an collectivist emerging market need to understand that millennials are price sensitive and may repurchase from unauthorised retailers. Accurate information and sales promotions can be used to stimulate demand for a high involvement product.Originality/valueFunctional theories of attitudes is used to link the concept of customer service with knowledge function utilisation in order to establish how customers in a collectivist emerging market process information and share knowledge through socialisation.

Prospective directions regarding the management of forestry development in Podilsk economic region

The article considers theoretical and methodological approaches and prospects for stimulating the development of forestry in the Podilsk economic region. The main factors of negative impact on stimulation and development in the forest sector of the region are identified. Promising management approaches that will ensure effectiveness in the management of the timber industry are clarified. The stages of solving the problems of forestry in carrying out reforms with the use of foreign experience, as well as improving institutions, market mechanisms in combination with state support are given. It is proved that the development of the forest resource sphere of the Podilsk economic region should be based on the active cooperation of public-private partnership, which will attract additional financial resources for the development, modernization and creation of new forestry industries. And also change of the approach of administrative decisions will promote development of infrastructural maintenance of the Podolsk economic area. The introduction of modern management mechanisms will reduce the monopolization of the timber market in the region, and the attraction of private capital in forestry will lead to a competitive environment. In turn, forestries, as stakeholders in the regional market process, will be motivated to increase wood diversity with an emphasis on more valuable species of wood. The directions of improvement and improvement of conditions of forestry development in Podil economic region, and also regulation of forestry which should provide stable development of forestry by increase of rationality of management and multipurpose use of forest resources are defined.