Uncertainty and the dangers of monocultures in regulation, analysis, and practice
Uncertainty is endemic to innovative economies and complex societies, but policymakers underestimate how damaging this is for many of their guiding assumptions. In particular, the discourse of best practice, "global solutions for global problems," and regulatory harmonization becomes questionable when there is substantial uncertainty about the future. This uncertainty makes it impossible to know what best practice will be and increases the danger that harmonization will result in highly correlated errors and shared analytical blind spots. The transnational harmonization of regulation has well-known advantages, but - especially in technocratic policy areas - also creates vulnerability to unexpected challenges by constraining how we think as well as homogenizing how we act. Faced with uncertainty, policymakers should be wary of monocultures in regulation, analysis, and practice, and instead focus on managing policy diversity to limit its costs. This paper's theoretical argument is grounded in philosophy, the history of ideas, and even biology. However, we also present empirical examples and consider some implications for political theory.
|Date of creation:||2016|
|Contact details of provider:|| Postal: Paulstr. 3, 50676 Köln|
Phone: + 49 (0) 221-2767-0
Web page: http://www.mpifg.de/
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Fligstein, Neil & Brundage, Jonah S & Schultz, Michael, 2014. "Why the Federal Reserve Failed to See the Financial Crisis of 2008: The Role of â€œMacroeconomicsâ€ as a Sense making and Cultural Frame," Institute for Research on Labor and Employment, Working Paper Series qt97k6t78z, Institute of Industrial Relations, UC Berkeley.
- Fontana, Magda, 2010.
"Can neoclassical economics handle complexity? The fallacy of the oil spot dynamic,"
Journal of Economic Behavior & Organization,
Elsevier, vol. 76(3), pages 584-596, December.
- Magda Fontana, 2010. "Can Neoclassical Economics Handle Complexity? The Fallacy of the Oil Spot Dynamic," Post-Print hal-00911826, HAL.
- Donald MacKenzie, 2008. "An Engine, Not a Camera: How Financial Models Shape Markets," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262633671, January.
- Geoffrey Hodgson, 2011. "The Eclipse of the Uncertainty Concept in Mainstream Economics," Journal of Economic Issues, M.E. Sharpe, Inc., vol. 45(1), pages 159-176.
- Tim Büthe & Walter Mattli, 2011. "The New Global Rulers: The Privatization of Regulation in the World Economy," Economics Books, Princeton University Press, edition 1, number 9470.
- Harry Markowitz, 1952. "Portfolio Selection," Journal of Finance, American Finance Association, vol. 7(1), pages 77-91, March.
- Backhouse,Roger E., 2010. "The Puzzle of Modern Economics," Cambridge Books, Cambridge University Press, number 9780521532617, May.
- John Conlisk, 1996. "Why Bounded Rationality?," Journal of Economic Literature, American Economic Association, vol. 34(2), pages 669-700, June.
- Scott E. Page, 2007. "Prologue to The Difference: How the Power of Diversity Creates Better Groups, Firms, Schools, and Societies," Introductory Chapters,in: The Difference: How the Power of Diversity Creates Better Groups, Firms, Schools, and Societies Princeton University Press.
- Paul Davidson, 1996. "Reality and Economic Theory," Journal of Post Keynesian Economics, Taylor & Francis Journals, vol. 18(4), pages 479-508, July.
- George A. Akerlof, 1970. "The Market for "Lemons": Quality Uncertainty and the Market Mechanism," The Quarterly Journal of Economics, Oxford University Press, vol. 84(3), pages 488-500.
When requesting a correction, please mention this item's handle: RePEc:zbw:mpifgd:166. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (ZBW - German National Library of Economics)
If references are entirely missing, you can add them using this form.