The Shift toward Secular Ideology

Following the rise of the state, religion served to legitimate societies’ institutions, practices, and unequal distributions of income, wealth, and privilege. However, emerging capitalism and its expanding bourgeoisie in Western Europe challenged the Catholic Church’s monopoly on truth and meaning, opening space for secular legitimation. The science of political economy increasingly evolved as a principal body of social thought legitimating inequality. This transfer from religion to political economy begins with the mercantilists and is mostly complete by the end of the nineteenth century. Political economy’s principal inequality-legitimating doctrines include the utility of poverty, the justice of the invisible hand, the Malthusian population doctrine, the wages-fund doctrine, and the trickle-down thesis. Most of these doctrines take on more of a patina of “natural” science in the late nineteenth century when the neoclassical revolution in economics attempted to sever economic science from morality and politics and express itself technically with calculus.

Socio-legal systems and implementation of the Nash solution in Debreu–Hurwicz equilibrium

In this article we combine Debreu’s (Proc Natl Acad Sci 38(10):886–893, 1952) social system with Hurwicz’s (Econ Design 1(1):1–14, 1994; Am Econ Rev 98(3):577–585, 2008) ideas of embedding a “desired” game form into a “natural” game form that includes all feasible behavior, even if it is “illegal” according to the desired form. For the resulting socio-legal system we extend Debreu’s concepts of a social system and its social equilibria to a socio-legal system with its Debreu–Hurwicz equilibria. We build on a more general version of social equilibrium due to Shafer and Sonnenschein (J Math Econ 2(3):345–348, 1975) that also generalizes the dc-mechanism of Koray and Yildiz (J Econ Theory 176:479–502, 2018) which relates implementation via mechanisms with implementation via rights structures as introduced by Sertel (Designing rights: invisible hand theorems, covering and membership. Tech. rep. Mimeo, Bogazici University, 2001). In the second part we apply and illustrate these new concepts via an application in the narrow welfarist framework of two person cooperative bargaining. There we provide in a socio-legal system based on Nash’s demand game an implementation of the Nash bargaining solution in Debreu–Hurwicz equilibrium.

Institutional Logics in Innovation

This chapter analyses the different institutional logics surrounding China’s innovation machine, including the ‘visible hand’ of the state and ‘invisible hand’ of the market. The idea of innovation in China resulting from centralized decisions in government is shown to be a myth; instead, it results from the interaction of initial bottom-up innovations and subsequent top-down direction, support, or correction. The cultural roots of China’s multiple institutional logics are explained, including the role of hierarchy, the tolerance of ambiguity, and the search for unity. Balance is sought within Chinese bureaucracies, between central and local governments, and between formal and informal authority. The chapter analyses Chinese policy frameworks for science and technology, innovation, intellectual property, education and talent, environment, industry, and the reform of state-owned enterprises. A case study of the car industry is provided, focusing particularly on how policy instruments are used to encourage carmakers to capitalize on the opportunities presented by the new technology trajectory of new energy vehicles.

Efficient Allocations in Double Auction Markets

This paper proposes a simple descriptive model of discrete-time double auction markets for divisible assets. As in the classical models of exchange economies, we consider a finite set of agents described by their initial endowments and preferences. Instead of the classical Walrasian-type market models, however, we assume that all trades take place in a centralized double auction where the agents communicate through sealed limit orders for buying and selling. We find that, under nonstrategic bidding, double auction clears with zero trades precisely when the agents’ current holdings are on the Pareto frontier. More interestingly, the double auctions implement Adam Smith’s “invisible hand” in the sense that, when starting from disequilibrium, repeated double auctions lead to a sequence of allocations that converges to individually rational Pareto allocations.

Media Post-coloniality and the Ethereal Persian ‘Empress’: How Hollywood Weaponized the Nostalgia of Exile

The osmosis between Iranian exile, Oriental repertoires, and the commodification of nostalgia in film and contemporary1 culture alludes to the Disney reproduction of the East that is capitalized by Hollywood’s invisible hand. The commodification of Orientalist logic via nostalgia of old civilization and Achaemenid grandeur is conveyed by Hamid Naficy’s (1991) reference to Edward Said’s (1978) ‘imaginary2 geography’—the inventive tool of narration that augments tales and anecdotes of exilic narratives, while heightening essentialism of the East. The European modeling of coronation, bejeweled scepters of royalty under the Pahlavi period (1941-1979), and cinematic repertoires of Iranians in film are perpetuated for viewers via fetishization, lust, and enchantment. The televised 1967 coronation of Queen Farah (b. 1938) solidified the trope of the Persian ‘Empress’ through picturesque markers of Achaemenid rulership (550-330 BCE). Media3 propagations of nostalgia in the paradisiacal Pahlavi coronation can be paralleled to current illusions of the Orient presented in the film Paterson (Jarmusch, 2016), starring exiled Iranian actress Golshifteh Farahani. I refer to the Pahlavi coronation to expand on the spectacle of ‘nostalgia’, and the desire for a distant homeland. Naficy’s (1991) interpretation of ‘nostalgia’—a factor of exile, expounds how relics and objects induce a longing for the distant and ahistorical. Objects of nostalgia are inexplicably weaponized in Hollywood inventions of Near Eastern characters and serve as palpable symbols of the East via skewed representations of women, sexuality, and the exotic4 (Ahmed, 2006). Poetry, nostalgia, and fictional tales of the Orient in Paterson (Jarmusch, 2016) allude to Said’s (1978) vision of the imperialist project in Orientalism. The inventive and imaginary power of color media in the televised Pahlavi coronation and the fashioning of a politically permanent subject of interest—Iranians and the East, augured a pertinent era of media post-coloniality5 via the preservation of orientalism, rather than the Orient.

Epilogue: The Invisible Hand

The book concludes with an epilogue, “The Invisible Hand,” that explores the afterlife of Doré’s imagery as it has been subject to creative erasure. The extent to which these images have been appropriated and adapted is foregrounded in the very process of their original creation, as Doré’s designs were transformed into reproducible matrices through the work of the engravers. The examples of cutting and overpainting of Doré’s work with which the book concludes should be understood not as iconoclastic but as entirely consistent with and the inevitable outcome of both the history of the Bible writ large and Doré’s intervention therein.

Law and the Invisible Hand

A contemporary interpretation of Adam Smith's work on jurisprudence, revealing Smith's belief that progress emerges from cooperation and a commitment to justice. In Smith's theory, the tension between self–interest and the interests of others is mediated by law, so that the common interest of the community can be promoted. Moreover, Smith informs us that successful societies do at least three things well. They promote the common interest, advance justice through the rule of law, and they facilitate our natural desire to truck, barter, and exchange. In this process, law functions as an invisible force that holds society together and keeps it operating smoothly and productively. Law enhances social cooperation, facilitates trade, and extends the market. In these ways, law functions like Adams Smith's invisible hand, guiding and facilitating the progress of humankind.