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The Institutionalist Implications of the General Systems Theory: The Societal Role of the Market

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  • Vladislav Valentinov

Abstract

This paper examines how the general systems theory informs institutionalism, a strand of heterodox economic theory founded by Thorstein Veblen that is marked by a critical attitude towards the operation of real‐world markets. Focusing on Laszlo's systems philosophy and Bogdanov's Tektology, the paper shows that the general systems theory supports the institutionalist critique of the market but is more explicit about the significance of the market in ensuring the material self‐provisioning aspect of society. In line with the institutionalist critique, both Bogdanov and Laszlo share the concern that the market may not deliver the appropriate level of systemic integration within society, nor between society and the encompassing nature. However, both Bogdanov and Laszlo are shown to moderate the institutionalist critique by emphasizing the market's stabilizing and protective role, which is needed to safeguard the maintenance of social and technological complexity. Copyright © 2011 John Wiley & Sons, Ltd.

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  • Vladislav Valentinov, 2012. "The Institutionalist Implications of the General Systems Theory: The Societal Role of the Market," Systems Research and Behavioral Science, Wiley Blackwell, vol. 29(3), pages 253-262, May.
    • Handle: RePEc:bla:srbeha:v:29:y:2012:i:3:p:253-262
    DOI: 10.1002/sres.1129
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    1. Thorstein Veblen, 1909. "The Limitations of Marginal Utility," Journal of Political Economy, University of Chicago Press, vol. 17(9), pages 620-620.
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    3. Rutherford,Malcolm, 1996. "Institutions in Economics," Cambridge Books, Cambridge University Press, number 9780521574471.
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    7. Sebastian Berger & Wolfram Elsner, 2007. "European Contributions to Evolutionary Institutional Economics: The Cases of ‘Cumulative Circular Causation’ (CCC) and ‘Open Systems Approach’ (OSA). Some Methodological and Policy Implications," Journal of Economic Issues, Taylor & Francis Journals, vol. 41(2), pages 529-537, June.
    8. William M. Dugger, 1987. "Three Modes of Income Distribution: Market, Hierarchy, and Industry," Journal of Economic Issues, Taylor & Francis Journals, vol. 21(2), pages 723-731, June.
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    Cited by:

    1. Vladislav Valentinov & Lioudmila Chatalova, 2014. "Transaction Costs, Social Costs and Open Systems: Some Common Threads," Systems Research and Behavioral Science, Wiley Blackwell, vol. 31(2), pages 316-326, March.
    2. Vladislav Valentinov, 2014. "The Complexity–Sustainability Trade‐Off in Niklas Luhmann's Social Systems Theory," Systems Research and Behavioral Science, Wiley Blackwell, vol. 31(1), pages 14-22, January.
    3. Hielscher, Stefan & Pies, Ingo & Valentinov, Vladislav & Chatalova, Lioudmila, 2016. "Rationalizing the GMO debate: The ordonomic approach to addressing agricultural myths," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 13(5), pages 1-10.
    4. Krzysztof Kasianiuk, 2023. "Tracing tacit knowledge of polity research: a methodological account of system and environment," Quality & Quantity: International Journal of Methodology, Springer, vol. 57(1), pages 19-37, April.
    5. Valentinov, Vladislav, 2014. "K. William Kapp's theory of social costs: A Luhmannian interpretation," Ecological Economics, Elsevier, vol. 97(C), pages 28-33.
    6. Stefan Hielscher & Ingo Pies & Vladislav Valentinov & Lioudmila Chatalova, 2016. "Rationalizing the GMO Debate: The Ordonomic Approach to Addressing Agricultural Myths," IJERPH, MDPI, vol. 13(5), pages 1-10, May.
    7. Valentinov, Vladislav & Hielscher, Stefan & Pies, Ingo, 2015. "Nonprofit organizations, institutional economics, and systems thinking," Economic Systems, Elsevier, vol. 39(3), pages 491-501.
    8. Valentinov, Vladislav, 2015. "From equilibrium to autopoiesis: A Luhmannian reading of Veblenian evolutionary economics," Economic Systems, Elsevier, vol. 39(1), pages 143-155.
    9. Kosta Josifidis & Novica Supic, 2020. "Innovation and Income Inequality in the USA: Ceremonial versus Institutional Changes," Journal of Economic Issues, Taylor & Francis Journals, vol. 54(2), pages 486-494, April.

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