Economics and Institutions

Traditionally, economists have attributed consistency and rational
calculation to the action of 'economic man'. In a
powerful challenge to orthodox thinking, Geoffrey Hodgson maintains
that social institutions play a central and essential role in
molding preferences and guiding action: institutions are regarded
as enabling action rather than merely providing constraints.

From this perspective, the author takes on the 'free
marketers' such as Milton Friedman and the 'new
institutionalism' of Oliver Williamson. He argues against the
neo-classical and Austrian views of the operation of markets,
offering instead a convincing new synthesis of the work of Keynes,
Veblen, Simon and Marx. Taking up the implications of his argument,
Hodgson calls for a radically new policy perspective based on
structural reform and institutional intervention.

This work will be required reading for economics students in
their second and third years and will be of interest to students
and academics throughout the social sciences.