IDEAS home Printed from https://ideas.repec.org/p/ent/wpaper/wp36.html
   My bibliography  Save this paper

Inclusive and Exclusive Social Preferences: A Deweyan Framework to Explain Governance Heterogeneity

Author

Listed:
  • Silvia Sacchetti

    (Stirling Management School, Institute for Socio Management)

Abstract

We suggest that Dewey's theory of value formation has implications for the contraposition between individual and social preferences in economics. We re-consider that distinction and introduce, instead, the notions of inclusive and exclusive social preferences. We then apply this distinction to governance forms and suggest an explanatory framework of governance heterogeneity which contrasts exclusive and inclusive governance structures. In the final discussion we illustrate a possible use of the framework for assessing cooperatives and social enterprises as well as traditional corporations. More generally, we argue that the assessment of governance heterogeneity would benefit from a consideration of the type of social preferences underlying formal as well as substantive involvement of publics.

Suggested Citation

  • Silvia Sacchetti, 2012. "Inclusive and Exclusive Social Preferences: A Deweyan Framework to Explain Governance Heterogeneity," Econometica Working Papers wp36, Econometica.
    • Handle: RePEc:ent:wpaper:wp36
    as

    Download full text from publisher

    File URL: http://econometica.it/wp/wp36.pdf
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Ernst Fehr & Simon Gächter, 2000. "Fairness and Retaliation: The Economics of Reciprocity," Journal of Economic Perspectives, American Economic Association, vol. 14(3), pages 159-181, Summer.
    2. Tilman Slembeck, 1997. "The Formation of Economic Policy: A Cognitive-Evolutionary Approach to Policy-Making," Constitutional Political Economy, Springer, vol. 8(3), pages 225-254, August.
    3. Ernst Fehr & Klaus M. Schmidt, "undated". "Theories of Fairness and Reciprocity - Evidence and Economic Applications," IEW - Working Papers 075, Institute for Empirical Research in Economics - University of Zurich.
    4. Ulrich Witt, 2003. "Economic policy making in evolutionary perspective," Journal of Evolutionary Economics, Springer, vol. 13(2), pages 77-94, April.
    5. Shleifer, Andrei & Vishny, Robert W, 1997. "A Survey of Corporate Governance," Journal of Finance, American Finance Association, vol. 52(2), pages 737-783, June.
    6. Schumpeter, Joseph A., 1947. "The Creative Response in Economic History," The Journal of Economic History, Cambridge University Press, vol. 7(2), pages 149-159, November.
    7. Lorenzo Sacconi, 2011. "From individual responsibility to ÔsharedÕ social responsibilities: concepts for a new paradigm," Econometica Working Papers wp27, Econometica.
    8. R. H. Coase, 2013. "The Problem of Social Cost," Journal of Law and Economics, University of Chicago Press, vol. 56(4), pages 837-877.
    9. Ben-Ner, Avner & Putterman, Louis, 2000. "On some implications of evolutionary psychology for the study of preferences and institutions," Journal of Economic Behavior & Organization, Elsevier, vol. 43(1), pages 91-99, September.
    10. Ostrom, Elinor, 2010. "Revising theory in light of experimental findings," Journal of Economic Behavior & Organization, Elsevier, vol. 73(1), pages 68-72, January.
    11. Lorenzo Sacconi & Marco Faillo, 2010. "Conformity, reciprocity and the sense of justice. How social contract-based preferences and beliefs explain norm compliance: the experimental evidence," Constitutional Political Economy, Springer, vol. 21(2), pages 171-201, June.
    12. David, Paul A, 1985. "Clio and the Economics of QWERTY," American Economic Review, American Economic Association, vol. 75(2), pages 332-337, May.
    13. Cowling, Keith & Sugden, Roger, 1998. "Strategic Trade Policy Reconsidered: National Rivalry vs Free Trade vs International Cooperation," Kyklos, Wiley Blackwell, vol. 51(3), pages 339-357.
    14. Douglass C. North, 2005. "Introduction to Understanding the Process of Economic Change," Introductory Chapters, in: Understanding the Process of Economic Change, Princeton University Press.
    15. Richard A. Posner, 1974. "Theories of Economic Regulation," Bell Journal of Economics, The RAND Corporation, vol. 5(2), pages 335-358, Autumn.
    16. Buchanan, James M. & Vanberg, Viktor J., 1991. "The Market as a Creative Process," Economics and Philosophy, Cambridge University Press, vol. 7(2), pages 167-186, October.
    17. Ben-Ner, Avner & Putterman, Louis, 2009. "Trust, communication and contracts: An experiment," Journal of Economic Behavior & Organization, Elsevier, vol. 70(1-2), pages 106-121, May.
    18. Roger Sugden & Marcela Valania & James R. Wilson (ed.), 2013. "Leadership and Cooperation in Academia," Books, Edward Elgar Publishing, number 14775.
    19. Avinash Dixit, 2009. "Governance Institutions and Economic Activity," American Economic Review, American Economic Association, vol. 99(1), pages 5-24, March.
    20. Ann Markusen, 1996. "Sticky Places in Slippery Space: A Typology of Industrial Districts," Economic Geography, Taylor & Francis Journals, vol. 72(3), pages 293-313, July.
    21. Samuel Bowles, 1998. "Endogenous Preferences: The Cultural Consequences of Markets and Other Economic Institutions," Journal of Economic Literature, American Economic Association, vol. 36(1), pages 75-111, March.
    22. Jacques Defourny & Marthe Nyssens, 2010. "Conceptions of Social Enterprise and Social Entrepreneurship in Europe and the United States: Convergences and Divergences," Journal of Social Entrepreneurship, Taylor & Francis Journals, vol. 1(1), pages 32-53, March.
    23. Samuel Bowles & Sandra Polanía Reyes, 2009. "Economic Incentives and Social Preferences: A preference-Based Lucas Critique of Public Policy," UMASS Amherst Economics Working Papers 2009-11, University of Massachusetts Amherst, Department of Economics.
    24. Keith Cowling & Philip R. Tomlinson, 2011. "Post the 'Washington Consensus': economic governance and industrial strategies for the twenty-first century," Cambridge Journal of Economics, Cambridge Political Economy Society, vol. 35(5), pages 831-852.
    25. Samuel Bowles & Sandra Polanía Reyes, 2009. "Economic Incentives and Social Preferences: A Preference-based Lucas Critique of Public Policy," CESifo Working Paper Series 2734, CESifo.
    26. Cowling, Keith & Sugden, Roger, 1998. "The Essence of the Modern Corporation: Markets, Strategic Decision-Making and the Theory of the Firm," The Manchester School of Economic & Social Studies, University of Manchester, vol. 66(1), pages 59-86, January.
    27. Gianluca Grimalda & Lorenzo Sacconi, 2005. "The Constitution of the Not-For-Profit Organisation: Reciprocal Conformity to Morality," Constitutional Political Economy, Springer, vol. 16(3), pages 249-276, September.
    28. Simon, Herbert A, 1979. "Rational Decision Making in Business Organizations," American Economic Review, American Economic Association, vol. 69(4), pages 493-513, September.
    29. Everett, Michael J & Minkler, Alanson P, 1993. "Evolution and Organisational Choice in Nineteenth-Century Britain," Cambridge Journal of Economics, Cambridge Political Economy Society, vol. 17(1), pages 51-62, March.
    30. Frey, Bruno S, 1997. "A Constitution for Knaves Crowds Out Civic Virtues," Economic Journal, Royal Economic Society, vol. 107(443), pages 1043-1053, July.
    31. Chang, Ha-Joon, 1997. "The Economics and Politics of Regulation," Cambridge Journal of Economics, Cambridge Political Economy Society, vol. 21(6), pages 703-728, November.
    32. Mill, John Stuart, 1859. "On Liberty," History of Economic Thought Books, McMaster University Archive for the History of Economic Thought, number mill1859.
    33. Fehr, Ernst & Schmidt, Klaus M., 2001. "Theories of Fairness and Reciprocity," Discussion Papers in Economics 14, University of Munich, Department of Economics.
    34. Kenneth L. Avio, 2002. "Three problems of social organisation: institutional law and economics meets Habermasian law and democracy," Cambridge Journal of Economics, Cambridge Political Economy Society, vol. 26(4), pages 501-520, July.
    35. Ostrom, Elinor & Basurto, Xavier, 2011. "Crafting analytical tools to study institutional change," Journal of Institutional Economics, Cambridge University Press, vol. 7(3), pages 317-343, September.
    36. J. Robert Branston & Keith Cowling & Roger Sugden, 2006. "Corporate Governance and the Public Interest," International Review of Applied Economics, Taylor & Francis Journals, vol. 20(2), pages 189-212.
    37. Silvia Sacchetti & Roger Sugden, 2009. "The Organization of Production and its Publics: Mental Proximity, Market and Hierarchies," Review of Social Economy, Taylor & Francis Journals, vol. 67(3), pages 289-311.
    38. Avner Ben-Ner & Matthew Ellman, 2013. "The contributions of behavioural economics to understanding and advancing the sustainability of worker cooperatives," Journal of Entrepreneurial and Organizational Diversity, European Research Institute on Cooperative and Social Enterprises, vol. 2(1), pages 75-100, August.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Dirk C. Moosmayer & Sandra Waddock & Long Wang & Matthias P. Hühn & Claus Dierksmeier & Christopher Gohl, 2019. "Leaving the Road to Abilene: A Pragmatic Approach to Addressing the Normative Paradox of Responsible Management Education," Journal of Business Ethics, Springer, vol. 157(4), pages 913-932, July.
    2. Simon Cornée & Madeg Le Guernic & Damien Rousselière, 2020. "Governing Common-Property Assets: Theory and Evidence from Agriculture," Journal of Business Ethics, Springer, vol. 166(4), pages 691-710, November.
    3. Tortia, Ermanno C., 2017. "The firm as a common. The case of the accumulation and use of capital resources in co-operative enterprises," MPRA Paper 76735, University Library of Munich, Germany.
    4. Silvia Sacchetti & Carlo Borzaga, 2021. "The foundations of the “public organisation”: governance failure and the problem of external effects," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 25(3), pages 731-758, September.
    5. Sacchetti, Silvia & Tortia, Ermanno, 2016. "A needs theory of governance," AICCON Working Papers 151-2016, Associazione Italiana per la Cultura della Cooperazione e del Non Profit.
    6. Ermanno C. Tortia & Florence Degavre & Simone Poledrini, 2020. "Why are social enterprises good candidates for social innovation? Looking for personal and institutional drivers of innovation," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 91(3), pages 459-477, September.
    7. Ermanno C. Tortia & Silvia Sacchetti & Francisco J. López-Arceiz, 2022. "A Human Growth Perspective on Sustainable HRM Practices, Worker Well-Being and Organizational Performance," Sustainability, MDPI, vol. 14(17), pages 1-22, September.
    8. Vladislav Valentinov, 2017. "The Rawlsian Critique of Utilitarianism: A Luhmannian Interpretation," Journal of Business Ethics, Springer, vol. 142(1), pages 25-35, April.
    9. Sacchetti, Silvia & Tortia, Ermanno, 2012. "The internal and external governance of cooperatives: the effective membership and consistency of value," AICCON Working Papers 111-2012, Associazione Italiana per la Cultura della Cooperazione e del Non Profit.
    10. Ermanno C. Tortia, 2018. "The Firm as a Common. Non-Divided Ownership, Patrimonial Stability and Longevity of Co-Operative Enterprises," Sustainability, MDPI, vol. 10(4), pages 1-18, March.
    11. Simone Poledrini & Florence Degavre & Ermanno Tortia, 2018. "Editorial: Background and Further Perspectives on Social Innovation in Social Enterprises," Journal of Entrepreneurial and Organizational Diversity, European Research Institute on Cooperative and Social Enterprises, vol. 7(1), pages 1-13.
    12. Andrea Salustri, 2022. "A Multidimensional Analysis of the Municipalities of the Italian Small Islands," Sustainability, MDPI, vol. 14(16), pages 1-17, August.
    13. Magali Fia & Lorenzo Sacconi, 2019. "Justice and Corporate Governance: New Insights from Rawlsian Social Contract and Sen’s Capabilities Approach," Journal of Business Ethics, Springer, vol. 160(4), pages 937-960, December.
    14. Marina Albanese, 2020. "Social and Relational Variables in Worker Cooperatives: Implications for the Objective Function," Journal of Entrepreneurial and Organizational Diversity, European Research Institute on Cooperative and Social Enterprises, vol. 9(1), pages 26-44.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Roger Sugden, 2013. "Space in an inferno? The organization of modern universities and the role of academics," Chapters, in: Roger Sugden & Marcela Valania & James R. Wilson (ed.), Leadership and Cooperation in Academia, chapter 4, pages 43-57, Edward Elgar Publishing.
    2. Silvia Sacchetti & Ermanno C. Tortia, 2013. "The Internal and External Governance of Cooperatives: Membership and Consistency of Values," Euricse Working Papers 1362, Euricse (European Research Institute on Cooperative and Social Enterprises).
    3. Silvia Sacchetti & Carlo Borzaga, 2021. "The foundations of the “public organisation”: governance failure and the problem of external effects," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 25(3), pages 731-758, September.
    4. Sacchetti, Silvia & Tortia, Ermanno, 2013. "The Silver Lining Of Cooperation," AICCON Working Papers 125-2013, Associazione Italiana per la Cultura della Cooperazione e del Non Profit.
    5. Brousseau, Eric & Garrouste, Pierre & Raynaud, Emmanuel, 2011. "Institutional changes: Alternative theories and consequences for institutional design," Journal of Economic Behavior & Organization, Elsevier, vol. 79(1-2), pages 3-19, June.
    6. Silvia Sacchetti & Ermanno C. Tortia, 2010. "A NEW FRAMEWORK FOR THE ECONOMIC ANALYSIS OF COOPERATIVE FIRMS: Self-defined rules, common resources, motivations, and incentives," Econometica Working Papers wp21, Econometica.
    7. Carlo Borzaga & Ermanno Tortia, 2004. "Worker involvement in entrepreneurial nonprofit organizations. Toward a new assessment of workers' perceived satisfaction and fairness," Department of Economics Working Papers 0409, Department of Economics, University of Trento, Italia.
    8. Schnellenbach, Jan & Schubert, Christian, 2015. "Behavioral political economy: A survey," European Journal of Political Economy, Elsevier, vol. 40(PB), pages 395-417.
    9. Marianna Belloc & Samuel Bowles, 2009. "International Trade, Factor Mobility and the Persistence of Cultural-Institutional Diversity," Working Papers in Public Economics 126, University of Rome La Sapienza, Department of Economics and Law.
    10. Sacchetti, Silvia & Tortia, Ermanno, 2012. "The internal and external governance of cooperatives: the effective membership and consistency of value," AICCON Working Papers 111-2012, Associazione Italiana per la Cultura della Cooperazione e del Non Profit.
    11. Beatrix Eugster & Rafael Lalive & Andreas Steinhauer & Josef Zweimüller, 2011. "The Demand for Social Insurance: Does Culture Matter?," Economic Journal, Royal Economic Society, vol. 121(556), pages 413-448, November.
    12. Bruno S. Frey, 2003. "Flexible Citizenship for a Global Society," Politics, Philosophy & Economics, , vol. 2(1), pages 93-114, February.
    13. Garofalo, Maria Rosaria, 2011. "Il volontariato può sostenere lo sviluppo? Riflessioni metodologiche per la costruzione di un frame work teorico [Can the voluntary sector sustain the development path of an economy? Suggestions fo," MPRA Paper 40008, University Library of Munich, Germany.
    14. Neugebauer, Tibor & Poulsen, Anders & Schram, Arthur, 2008. "Fairness and reciprocity in the Hawk-Dove Game," Journal of Economic Behavior & Organization, Elsevier, vol. 66(2), pages 243-250, May.
    15. Cabrales, Antonio & Miniaci, Raffaele & Piovesan, Marco & Ponti, Giovanni, 2007. "An experiment on markets and contracts : do social preferences determine corporate culture?," UC3M Working papers. Economics we072010, Universidad Carlos III de Madrid. Departamento de Economía.
    16. Talbot Page & Louis Putterman & Bulent Unel, 2002. "Voluntary Association in Public Goods Experiments: Reciprocity, Mimicry and Efficiency," Working Papers 2002-19, Brown University, Department of Economics.
    17. Roger Sugden, 2019. "Management Education in a Public University in the Economic Periphery: Reflections in Action on UBC in Interior British Columbia," Journal of Entrepreneurial and Organizational Diversity, European Research Institute on Cooperative and Social Enterprises, vol. 8(2), pages 1-26.
    18. Samuel Bowles, 2010. "The Coevolution of Institutions and Preferences: History and Theory," Chapters, in: Neri Salvadori (ed.), Institutional and Social Dynamics of Growth and Distribution, chapter 2, Edward Elgar Publishing.
    19. Alves, Guillermo & Blanchard, Pablo & Burdin, Gabriel & Chávez, Mariana & Dean, Andrés, 2022. "Like principal, like agent? Managerial preferences in employee-owned firms," Journal of Institutional Economics, Cambridge University Press, vol. 18(6), pages 877-899, December.
    20. Simon Cornée & Marc Jegers & Ariane Szafarz, 2018. "A Theory of Social Finance," Working Papers halshs-01717167, HAL.

    More about this item

    Keywords

    private-public dichotomy; social preferences; pragmatism; governance heterogeneity; stakeholders;
    All these keywords.

    JEL classification:

    • B00 - Schools of Economic Thought and Methodology - - General - - - History of Economic Thought, Methodology, and Heterodox Approaches
    • L2 - Industrial Organization - - Firm Objectives, Organization, and Behavior
    • L3 - Industrial Organization - - Nonprofit Organizations and Public Enterprise

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ent:wpaper:wp36. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Matteo Rizzolli (email available below). General contact details of provider: https://edirc.repec.org/data/ecoetit.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.