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Concatenate coordination and mutual coordination

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  • Klein, Daniel
  • Orsborn, Aaron

Abstract

We tell of the evolving meaning of the term coordination as used by economists. The paper is based on systematic electronic searches (on "coord," etc.) of major works and leading journals. The term coordination first emerged in professional economics around 1880, to describe the directed productive concatenation of factors or activities within a firm. Also, transportation economists used the term to describe the concatenation of routes and trips of a transportation system. These usages represent what we term concatenate coordination. The next major development came in the 1930s from several LSE economists (Hayek, Plant, Hutt, and Coase), who extended that concept beyond the eye of any actual coordinator. That is, they wrote of the concatenate coordination of a system of polycentric or spontaneous activities. These various applications of concatenate coordination prevailed until the next major development, namely, Thomas Schelling and game models. Here coordination referred to a mutual meshing of actions. Game theorists developed crisp ideas of coordination games (like "battle of the sexes"), coordination equilibria, convention, and path dependence. This "coordination" was not a refashioning, but rather a distinct concept, one we distinguish as mutual coordination. As game models became more familiar to economists, it was mutual coordination that economists increasingly had in mind when they spoke of "coordination." Economists switched, so to speak, to a new semantic equilibrium. Now, mutual coordination overshadows the older notion of concatenate coordination. The two senses of coordination are conceptually distinct and correspond neatly to the two dictionary definitions of the verb to coordinate. Both are crucial to economics. We suggest that distinguishing between the two senses can help to clarify "coordination" talk. Also, compared to talk of "efficiency" and "optimality," concatenate coordination allows for a richer, more humanistic, and more openly aesthetic discussion of social affairs. The narrative is backed up by Excel worksheets that report on systematic content searches of the writings of economics using the worldwide web and, using JSTOR, of Quarterly Journal of Economics, Economic Journal, Journal of Political Economy, American Economic Review, and Economica.

Suggested Citation

  • Klein, Daniel & Orsborn, Aaron, 2009. "Concatenate coordination and mutual coordination," Journal of Economic Behavior & Organization, Elsevier, vol. 72(1), pages 176-187, October.
  • Handle: RePEc:eee:jeborg:v:72:y:2009:i:1:p:176-187
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    References listed on IDEAS

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    1. Daniel B. Klein & Jason Briggeman, 2010. "Israel Kirzner on Coordination and Discovery," Journal of Private Enterprise, The Association of Private Enterprise Education, vol. 25(Spring 20), pages 1-53.
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    5. Klein, Daniel, 2004. "The People’s Romance: Why People Love Government (as much as they do)," Ratio Working Papers 31, The Ratio Institute, revised 11 May 2005.
    6. Coase, R H, 1988. "The Nature of the Firm: Meaning," The Journal of Law, Economics, and Organization, Oxford University Press, vol. 4(1), pages 19-32, Spring.
    7. Russell Cooper & Andrew John, 1988. "Coordinating Coordination Failures in Keynesian Models," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 103(3), pages 441-463.
    8. Spencer, Herbert, 1862. "First Principles," History of Economic Thought Books, McMaster University Archive for the History of Economic Thought, number spencer1862.
    9. David Friday, 1922. "An Extension of Value Theory," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 36(2), pages 197-219.
    10. Ball, Laurence & Romer, David, 1991. "Sticky Prices as Coordination Failure," American Economic Review, American Economic Association, vol. 81(3), pages 539-552, June.
    11. Smith, Adam, 1759. "The Theory of Moral Sentiments," History of Economic Thought Books, McMaster University Archive for the History of Economic Thought, number smith1759.
    12. Robert Sugden, 2005. "Spontaneous Order," Palgrave Macmillan Books, in: The Economics of Rights, Co-operation and Welfare, chapter 1, pages 1-9, Palgrave Macmillan.
    13. Diamond, Peter A, 1982. "Aggregate Demand Management in Search Equilibrium," Journal of Political Economy, University of Chicago Press, vol. 90(5), pages 881-894, October.
    14. Coase, R H, 1988. "The Nature of the Firm: Origin," The Journal of Law, Economics, and Organization, Oxford University Press, vol. 4(1), pages 3-17, Spring.
    15. H. Peyton Young, 1996. "The Economics of Convention," Journal of Economic Perspectives, American Economic Association, vol. 10(2), pages 105-122, Spring.
    16. Daniel Klein, 1997. "Convention, Social Order, and the Two Coordinations," Constitutional Political Economy, Springer, vol. 8(4), pages 319-335, December.
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    Cited by:

    1. Daniel B. Klein & Jason Briggeman, 2010. "Israel Kirzner on Coordination and Discovery," Journal of Private Enterprise, The Association of Private Enterprise Education, vol. 25(Spring 20), pages 1-53.
    2. Peter J. Boettke & Daniel J. D'Amico, 2010. "Corridors, Coordination, and the Entrepreneurial Theory of the Market Process," Journal of Private Enterprise, The Association of Private Enterprise Education, vol. 25(Spring 20), pages 87-96.
    3. Robert P. Murphy, 2010. "Coordination: A Critique of Daniel Klein," Journal of Private Enterprise, The Association of Private Enterprise Education, vol. 25(Spring 20), pages 117-127.
    4. Anthony J. Evans & Vlad Tarko, 2014. "Contemporary Work in Austrian Economics," Journal of Private Enterprise, The Association of Private Enterprise Education, vol. 29(Fall 2014), pages 135-157.
    5. Parinov, Sergey, 2021. "Перспективы Цифровой Трансформации Механизмов Координации [Towards digital transformation of coordination mechanisms]," MPRA Paper 108816, University Library of Munich, Germany.
    6. Bruno Marques, 2016. "Tourisme-Transport : Capacity Coordination [Tourisme-Transport : Capacité De Coordination]," Working Papers hal-01265798, HAL.
    7. Harper, David A., 2013. "Property rights, entrepreneurship and coordination," Journal of Economic Behavior & Organization, Elsevier, vol. 88(C), pages 62-77.
    8. Klein, Daniel, 2009. "Unfolding the Allegory behind Market Communication and Social Error and Correction," Ratio Working Papers 133, The Ratio Institute, revised 17 Feb 2010.
    9. Barbara Dluhosch & Stefanie Krause, 2013. "Diversity and the disinterest in trade liberalization: on the prospects of self-enforcing cooperation," Journal of Evolutionary Economics, Springer, vol. 23(2), pages 455-475, April.
    10. Jan Libich & Dat Thanh Nguyen, 2022. "When a compromise gets compromised by another compromise," Australian Economic Papers, Wiley Blackwell, vol. 61(4), pages 678-716, December.
    11. Minjie Li & Jian Wang & Yihui Chen, 2019. "Evaluation and Influencing Factors of Sustainable Development Capability of Agriculture in Countries along the Belt and Road Route," Sustainability, MDPI, vol. 11(7), pages 1-28, April.
    12. Bruno Marques, 2016. "Transport-Tourism: Capacity Coordination [Tourisme-Transport : Capacite De Coordination]," Working Papers hal-01265818, HAL.

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    More about this item

    Keywords

    Coordination Concatenation Planning Coordination equilibrium Focal point;

    JEL classification:

    • A10 - General Economics and Teaching - - General Economics - - - General
    • B00 - Schools of Economic Thought and Methodology - - General - - - History of Economic Thought, Methodology, and Heterodox Approaches
    • C70 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - General
    • D02 - Microeconomics - - General - - - Institutions: Design, Formation, Operations, and Impact

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