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The hidden persuaders: institutions and individuals in economic theory

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  • Geoffrey M. Hodgson

Abstract

In his classic book The Hidden Persuaders, Vance Packard claimed that large corporations manipulated consumers, using advertising techniques. John Kenneth Galbraith and others have repeated a similar view. Against this, Gary Becker and George Stigler have claimed that advertising is essentially informative rather than manipulative. In contrast, it is argued here that both of these opposed accounts of human agency neglect the more subtle and undesigned processes by which institutions bear upon and mould individuals. This paper proposes a concept of 'reconstitutive downward causation' in which institutions act upon individual habits and dispositions. The mechanisms involved do not fall foul of past critiques of 'holism' or methodological collectivism. This argument involves a rehabilitation of the concept of habit in social science, with far-reaching implications. Copyright 2003, Oxford University Press.

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Bibliographic Info

Article provided by Oxford University Press in its journal Cambridge Journal of Economics.

Volume (Year): 27 (2003)
Issue (Month): 2 (March)
Pages: 159-175

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Handle: RePEc:oup:cambje:v:27:y:2003:i:2:p:159-175

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Cited by:
  1. Hodgson, Geoffrey M. & Knudsen, Thorbjorn, 2004. "The complex evolution of a simple traffic convention: the functions and implications of habit," Journal of Economic Behavior & Organization, Elsevier, vol. 54(1), pages 19-47, May.
  2. Chong Choi & Ron Berger, 2010. "Ethics of Celebrities and Their Increasing Influence in 21st Century Society," Journal of Business Ethics, Springer, vol. 91(3), pages 313-318, February.
  3. Paschalis Arvanitidis, 2006. "A Framework of Socioeconomic Organisation: Redefining Original Institutional Economics Along Critical Realist Philosophical Lines," ERSA conference papers ersa06p575, European Regional Science Association.
  4. Hodgson, Geoffrey M., 2004. "Reclaiming habit for institutional economics," Journal of Economic Psychology, Elsevier, vol. 25(5), pages 651-660, October.
  5. John H. Finch & Robert McMaster, 2005. "The paths of classical political economy and Walrasian economics through Bowles and Gintis’ rendering of post Walrasian economics," SCEME Working Papers: Advances in Economic Methodology 009/2005, SCEME.
  6. Jorge Martinez-Vazquez & Benno Torgler, 2007. "The Evolution of Tax Morale in Modern Spain," School of Economics and Finance Discussion Papers and Working Papers Series 224, School of Economics and Finance, Queensland University of Technology, revised 12 Aug 2008.
  7. Sillanpää, Antti & Laamanen, Tomi, 2009. "Positive and negative feedback effects in competition for dominance of network business systems," Research Policy, Elsevier, vol. 38(5), pages 871-884, June.
  8. Luca Pieroni & Giorgio D'Agostino, 2011. "Corruption and the effects of economic freedom," Departmental Working Papers of Economics - University 'Roma Tre' 0133, Department of Economics - University Roma Tre.
  9. Bernard H.J. Verstegen, 2011. "A socio-economic view on management control," International Journal of Social Economics, Emerald Group Publishing, vol. 38(2), pages 114-127, January.
  10. Dolfsma, W.A. & McMaster, R. & Finch, J., 2005. "Institutions, Institutional Change, Language, and Searle," Research Paper ERS-2005-067-ORG, Erasmus Research Institute of Management (ERIM), ERIM is the joint research institute of the Rotterdam School of Management, Erasmus University and the Erasmus School of Economics (ESE) at Erasmus Uni.
  11. Nir Kshetri & Ralf Bebenroth, 2012. "Japan's Orientation towards Foreign Investments: Inertia Effects and Driving Force of Institutional Changes," Discussion Paper Series DP2012-12, Research Institute for Economics & Business Administration, Kobe University.
  12. Harbi, Sana El & Anderson, Alistair R., 2010. "Institutions and the shaping of different forms of entrepreneurship," The Journal of Socio-Economics, Elsevier, vol. 39(3), pages 436-444, June.
  13. Andrea Migone, 2011. "Embedded markets: A dialogue between F.A. Hayek and Karl Polanyi," The Review of Austrian Economics, Springer, vol. 24(4), pages 355-381, December.
  14. Geoffrey Hodgson, 2002. "The Evolution of Institutions: An Agenda for Future Theoretical Research," Constitutional Political Economy, Springer, vol. 13(2), pages 111-127, June.
  15. Robert Prasch, 2003. "Are economists amoral? Contemporary economic thought and the distinction between values and prices," Forum for Social Economics, Springer, vol. 32(2), pages 13-22, March.
  16. Chong Choi & Ron Berger, 2009. "Ethics of Global Internet, Community and Fame Addiction," Journal of Business Ethics, Springer, vol. 85(2), pages 193-200, March.

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