Jackson, William A.
A icle — Accep ed Manusc ip (Pos p in )
Ma ke s as Dualis ic, Semi-Decen alized O ganiza ions
Re iew o E olu iona y Poli ical Economy
Sugges ed Ci a ion: Jackson, William A. (2024) : Ma ke s as Dualis ic, Semi-Decen alized
O ganiza ions, Re iew o E olu iona y Poli ical Economy, ISSN 2662-6144, Sp inge Na u e, Be lin,
Vol. 5, Iss. 1, pp. 153-172,
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Re iew o E olu iona y Poli ical Economy, 5(1): 153-172, 2024
(Accep ed au ho manusc ip )
MARKETS AS DUALISTIC,
SEMI-DECENTRALIZED ORGANIZATIONS
William A. Jackson
Depa men o Economics and Rela ed S udies,
Uni e si y o Yo k, Yo k YO10 5DD, UK
Email: [email p o ec ed]
Abs ac
The heo e ical ideal o a compe i i e ma ke is gene ally assumed o sepa a e
o ganizing om ading, in an implici dualism. T ade s sell o buy wi hin
he ma ke bu do no o ganize i . This pape p oposes an al e na i e, mo e
ealis ic concep ual scheme based on duali y, in which o ganizing and ading
a e dis inc bu in e wined. While he exchange o p ope y igh s is o e seen
cen ally, many de ails o ma ke ade a e decided locally by ade s.
P oduce s and e aile s may a ange he ading enue, speci y he i ems
aded, se and publish p ices, p o ide in o ma ion, and anspo goods. They
cul i a e ela ionships wi h cus ome s, ecas ing he pa e n o ade and he
social s uc u es ha unde lie he ma ke . Such dualis ic, semi-decen alized
o ganizing gene a es o he duali ies, including s abili y-change and
con inui y-c ea i i y. A duali y pe spec i e can encompass he complexi y o
ma ke s, as well as illus a ing he nume ous ways hey may e ol e.
Keywo ds: ma ke s, o ganiza ion, duali y, complexi y, e olu ion
JEL Codes: B52, D40, L11, L14
- 1 -
1. In oduc ion
The o ganizing o ma ke s is o en neglec ed by economis s, bu has occasionally been
no iced. Ins i u ional economis s ha e poin ed ou ha ma ke ade occu s wi hin an
o ganized ins i u ional amewo k and could no exis o he wise (Low y 1994;
Rosenbaum 2000; Dol sma, Finch and McMas e 2005; Hodgson 2008; P asch 2008,
Pa I). Wi hou p ope y igh s and ules o hei olun a y ans e , any sus ained
exchange would be un easible. The need o p io o ganizing is acknowledged when
ma ke s a e de ined as ‘o ganized and ins i u ionalized exchange’ (Hodgson 1988,
Chap e 8, 2008; Adams and Tiesdell 2010; Jackson 2019b, Chap e 1). A ma ke mus
be p epa ed in ad ance and does no appea spon aneously.
Ma ke o ganizing has also been add essed by economic sociologis s and o ganiza ion
heo is s, who ha e s udied how ma ke s a ise and ope a e (see, o example, Lie 1997;
Whi e 2002; Swedbe g 2003, Chap e 5; Fou cade 2007; Becke 2009; Ah ne, Aspe s
and B unsson 2015; B unsson and Ju e s öm 2018; B unsson 2019; Aspe s, Beng sson
and Dobeson 2020). The e may be no single o ganize , and ade s hemsel es may se
p ices, b and p oduc s, p o ide in o ma ion and nu u e ela ionships wi h o he ade s.
O ganizing and ading a e mingled, so ha cen al bodies only pa ially o ganize he
ma ke and ade s ill he gaps (McMillan 2002, Chap e 1; Redmond 2010; Ah ne and
B unsson 2011; B unsson 2019). Because o ganizing is sp ead ac oss a ious agen s, ew
labelled as o ganize s, i is easily o e looked.
Economic and sociological li e a u es on ma ke o ganizing di e in hei emphasis.
Ins i u ional economics has ollowed John Commons (1924) in examining he legal
ounda ions o ma ke ade, hough i has said less abou how ma ke s eme ge and how
ade is a anged. Mo e ecen economic li e a u e has gone u he , o conside he
p ac ical unc ioning o inancial and o he ma ke s (examples a e O léan 1999, 2014;
Re es and Sapio 2013, 2019). Economic sociology has s essed he local de ail o how
ade s in e ac , wi h ne wo king and pa ial o ganiza ion by a ious agen s (Bake 1984;
Lie 1997; Whi e 2002; Ah ne, Aspe s and B unsson 2015; B unsson 2019; Aspe s,
- 2 -
Beng sson and Dobeson 2020). A en ion is de o ed chie ly o pa icula cases o ma ke
ading, a he han he ins i u ional backg ound. Some s ands o economic sociology
ha e, none heless, in es iga ed he s uc u al basis o ma ke s, no ably in ield heo ies
(Fligs ein 2001; Bou dieu 2005). Along wi h di e ences o emphasis, he economic and
sociological li e a u es a e sepa a ed by disciplina y bounda ies and seldom collabo a e
o ci e each o he .
The cu en pape builds on hese li e a u es and pu s hem wi hin a no el concep ual
scheme. In he heo e ical ideal o pe ec compe i ion, ading should be pu e and
sepa a ed om o ganizing, o gi e a dualism. An al e na i e concep ion o ma ke s, se
ou in ollowing discussion, ega ds o ganizing and ading as being in e wined, ied
oge he in a duali y (Bhaska , 1993, Chap e 2; Reed, 1997; Jackson, 1999). Ma ke s do
ha e o mal o ganizing bodies, bu many a e no designa ed as such and ake pa in
selling o buying. Real ma ke s a e bes desc ibed by o ganizing- ading duali y, which
cap u es how ade s eshape ma ke s and how some bu no all ma ke o ganizing is
decen alized. Po aying ma ke s in his way can illumina e issues such as he p oblems
o egula ion, he di e si y o ma ke s, hei e olu ion, and hei appa en ly con adic o y
ea u es.
Sec ion 2 deals wi h he main asks in o ganizing a ma ke and whe he hey a e
cen alized. Sec ion 3 explains he concep ual scheme o o ganizing- ading duali y.
Sec ion 4 looks a examples in ac ual ma ke s, and Sec ion 5 conside s implica ions o
he s udy o ma ke s. Sec ion 6 makes concluding commen s.
2. O ganizing ma ke s
The wo d ‘o ganiza ion’ has no ag eed meaning. A widesp ead iew, consis en wi h
e e yday usage, is ha an o ganiza ion is s ee ed by agen s who selec i s goals and
- 3 -
de e mine i s in e nal hie a chy and p ocedu es (Rowlinson 1997, Chap e 4; Da 2021,
Chap e 1). I has goal-di ec ed agency and may be a legal agen in i s own igh . Fo mal,
hie a chical o ganiza ion has been di e en ia ed om ma ke s in a ma ke s-o -hie a chies
con as , some imes wi h ne wo ks as a hyb id case (Williamson 1973, 1975; Tho elli
1986; Thompson e al. 1991). O he meanings o o ganiza ion a e also disce nible – i
may e e o he p ocess o o ganiza ion, as well as o he ou come o his p ocess.
Fo he sake o cla i y, we can dis inguish h ee senses o o ganiza ion: ‘o ganizing
body’ e e s o a o mal o ganiza ion wi h explici goals and goal-di ec ed agency, as wi h
i ms o go e nmen s; ‘o ganizing’ e e s o he p ocess o o ganiza ion, which could be
dis ibu ed among se e al o ganizing bodies; ‘o ganized esul ’ e e s o he ou come o
o ganizing. All h ee senses ha e ele ance o ma ke s. A ma ke ypically has se e al
o ganizing bodies, some in ol ed in ading, and he p ocess o o ganiza ion is essen ial
o he sus enance o ade. The ma ke i sel can be seen as he o ganized esul o hese
e o s. Al hough i does no ha e i s own goals o goal-di ec ed agency, i is he ou come
o o ganizing by goal-di ec ed bodies.
The o ganizing bodies may ha e mul iple goals, some gea ed o public se ice, o he s
se ing p i a e in e es s, including p o i i he body is comme cial. By helping o
o ganize a ma ke , howe e , e e y o ganizing body mus wan o acili a e ade and
inc ease i s olume. While he ma ke as an o ganized esul has no goals, i s o ganizing
bodies ha e a leas one sha ed goal in p omo ing ade. Beyond his, he de ails o
o ganizing a e a iable.
Aspe s, Beng sson and Dobeson (2020) a gue ha ma ke s a e ashioned h ough
o ganiza ion, mu ual adjus men and ields. O ganiza ion comes om an o e o ganizing
body ha uns a ma ke on behal o o he s who wish o ade. The o ganizing is isible,
as in a s ock exchange, bu liable o be incomple e. Mu ual adjus men happens when
he e is no single o ganizing body and he ma ke eme ges om pa ial o ganiza ion by
p oduce s o e aile s (Chambe lin 1933; Robinson 1933; Whi e 1981, 2002). O ganizing
is dispe sed ac oss he majo pa icipan s who adjus o each o he . Fields en isage a
wide o igin o ma ke s, om he social con ex o capi al accumula ion, p oduc ion,
- 4 -
powe and comme ce: an unde s anding o ma ke o ganiza ion mus heed he economic
and social landscape (Fligs ein 2001; Bou dieu 2005; Becke 2010; Fligs ein and Calde
2015). De ails o any pa icula ma ke will depend p ima ily on o ganiza ion and mu ual
adjus men , ye hey in u n a e con ingen on he ield.
Ins i u ions oo ha e no ag eed de ini ion, bu usually e e o ules, oles and
p ocedu es ( o mal o in o mal) as a s uc u ed se ing o beha iou (Neale 1987;
Hodgson 2006). Unlike an o ganizing body, hey ha e no goal-di ec ed agency and o m
an impe sonal s uc u e wi hin which agency is exe cised. An o ganizing body c ea es
ins i u ions h ough he p ocedu es ollowed by i s membe s and pa icipan s. Fo ma ke
exchange, he o ganizing bodies o he legal sys em implemen he oles o selle and
buye , which ha e ce ain igh s and esponsibili ies. These oles a e linked, as a selle
canno sell wi hou a buye , and yield a social s uc u e o in e connec ed oles ha exis
independen ly o he ole occupan s (Lawson 1997, Chap e 12; Jackson 2007; Saye
2010, Chap e 3). Any ma ke ade mus occupy he ole o selle o buye and espec
he ules o ading. Ma ke s ha e bo h ins i u ional s uc u es o suppo ade and
o ganizing bodies o o e see he ins i u ions.
Some o he o ganizing is cen alized and ex e nal: i is concen a ed among a ew
dedica ed agen s who do no ade and s ay ou side he ma ke . The es o he o ganizing
is decen alized and in e nal, sp ead ou ac oss nume ous agen s, many o whom ha e
en e ed he ma ke as ade s. Table 1 summa izes he main o ganizing asks in a ma ke .
The i s i e co e legal ounda ions o ma ke exchange. P ope y igh s mus be
de ined and main ained, since exchange implies ag eemen on ans e o p ope y.
T ading con ac s equi e o e sigh , h ough con ac law dis inguishing be ween
olun a y (legal) and in olun a y (illegal) ansac ions. Regula ion o ade will be
needed and may ha e o be ailo ed speci ically o a eas such as medicine o inance.
S anda ds mus be de ined and en o ced, wi h penal ies o misconduc . These asks come
o he o e in ade dispu es and ha e a low p o ile when ading goes smoo hly. They a e
no mally cen alized and ex e nal, ca ied ou by o ganizing bodies ha s and apa om
he ma ke . Excep ions a e possible, as in he his o ical cases whe e decen alized
- 5 -
egula ion by ade s has eme ged and p o ed wo kable (G ei 1992, 1993). Fo mos
ading, hough, egula ion has been conduc ed ex e nally.
Table 1 O ganizing a ma ke
Main o ganizing asks Pe o mance o o ganizing asks
De ining and main aining p ope y igh s
O e seeing ading con ac s
Regula ing ade Cen alized
De ining and en o cing s anda ds Ex e nal o he ma ke
Dealing wi h misconduc
A anging ading enues and da es
Speci ying he i ems aded
Se ing and publishing p ices Decen alized
P o iding in o ma ion In e nal o he ma ke
T anspo ing goods
The i e o ganizing asks in he bo om hal o Table 1 co e he p ac icali ies o how
ma ke s ope a e. A ading enue (physical o i ual) has o be a anged, allowing ade
o go ahead a a decla ed place and ime, and he i em being aded has o be speci ied and
known o po en ial ade s. Ma ke p ices mus be se and published as a guide o he
e ms o ade, and eliable in o ma ion on p oduc s and p ices is necessa y o sound
ading decisions. Goods mus be anspo ed o and om he ading enue, o be ween
he loca ions o selle and buye . These asks a e o en decen alized: selle s may a ange
he ading enue, di e en ia e and b and hei p oduc s, se p ices, and con ey
in o ma ion.
- 6 -
Ma ke s ha e a ious o ganize s. The o ganizing bodies o he legal sys em o e see
he o mal se ing o olun a y exchange o p ope y igh s. Some ma ke s, such as s ock
exchanges and auc ions, ha e u he o ganizing by a specialized body assigned o
p omo e compe i i e ade. O he ma ke s, such as hose o manu ac u ed goods, ha e
implici , piecemeal o ganizing by p oduce s/selle s. Al hough ma ke s equi e
o ganizing, some o i may be unde aken by agen s iewed as ade s and no labelled as
o ganize s. Much ma ke o ganizing is dispe sed, un aceable o a single ex e nal o
in e nal agen .
3. Dualism and duali y o o ganizing and ading
Unde pe ec compe i ion, pa icipan s in a ma ke a e assumed o be pu e ade s. The
ma ke al eady exis s as a se ing o compe i i e ade, wi hou any con ibu ion om he
ade s, implying dualism o o ganizing and ading. Dualism as a philosophical concep
deno es sepa a ion o wo i ems h ough a bina y con as ha a ouses ensions and
opposi ion (Dow 1990; Saye 2010, Chap e 1). He e, he concep ual scheme o dualism
di ides ma ke o ganize s om ade s. O ganize s build an a ena o ading, bu do no
ade. T ade s sell o buy compe i i ely, bu do no o ganize he ma ke .
Taci dualism e lec s he adi ional idea o a ma ke as a loca ion o ade. The
ma ke hen has p io exis ence as a place whe e ade s come oge he o make
comme cial ansac ions. His o ically, public o o he bodies ha e au ho ized and
egula ed ma ke s, ac ing as a isible o ganize . In la e-medie al England, o ins ance,
om he hi een h o he i een h cen u ies, ading occu ed in ‘ma ke owns’ o
‘ma ke places’ wi h he pe mission o he C own o ele an local au ho i ies (Pos an
1972, Chap e 12; B i nell 1981; Casson and Lee 2011; Da is 2012). In e e ence by
ade s in his o ganizing was disallowed, so he o ganize s and ade s we e kep apa .
- 7 -
Pe cep ion o ma ke s as a p e-a anged loca ion o ade has endu ed in mode n usage,
s oking he image y o dualism.
Neoclassical economic heo y, wi h pe ec compe i ion as i s benchma k, encou ages
implici dualism. The neoclassical model o a pe ec ly compe i i e ma ke , as o iginally
d awn up by Al ed Ma shall and Léon Wal as, was based on s ock exchanges o ganized
o mally by specialis au ho i ies (Aspe s 2007; Ah ne, Aspe s and B unsson 2015).
Compe i i e ade was made possible by p io o ganizing o he ma ke . This has been
o go en in much subsequen economic heo y, which dwells solely on a ional ading
beha iou . Despi e he silence abou o ganizing, i is sepa a ed om ading in
neoclassical heo y and implici dualism pe ains. Economic heo is s o en elax he
pe ec ly compe i i e ideal, ye i has been embedded in he eaching o economics and
bea s upon how ma ke s a e app ehended.
O ganize s
O ganizing
O ganizing oles
(p ope y, con ac s, egula ion, in o ma ion)
(Impe meable bounda y)
T ading oles
(selling, buying)
T ading
T ade s
Figu e 1 A ma ke wi h o ganizing- ading dualism
- 14 -
Kim 2011). T ading ne wo ks based on in o ma ion echnology in e e e wi h
anonymous compe i i e ade. En y o he ma ke may no be ee and p oduc s may be
ab ica ed on demand, emo ing any homogenei y. When ade s go beyond hei oles
as selle s o buye s, he ma ke shi s owa ds duali y. E en i a ma ke has been designed
by economic heo is s, a e a bluep in o e icien compe i i e ading, i will no mally
ha e unin ended consequences ha cause i o miss he hypo he ical ideal (Nik-Khah and
Mi owski 2019; Rilinge 2023a). Dualism can be pu sued in inancial ma ke s bu s ill
be una ainable. Ac ual inancial ma ke s ake many o ms, some decen alized wi h
ma ke -make s who also ade (Howells and Bain 2007; Pilbeam 2018). The e may be
in o mal, o e - he-coun e a angemen s, o ganiza ion by coope a i es o ade s, o
ading se ices p o ided by specialis companies. None o hese a ian s con o m o
dualism: as in o he ma ke s, duali y is s anda d.
4.3 Ma ke s o manu ac u ed goods
Mos ma ke s o manu ac u ed goods ha e no single o ganize and no o ganizing- ading
dualism. Goods a e b anded and ad e ised, p ices a e ixed, ade s know each o he ,
ex e nal in o ma ion is sca ce, and new p oduc s can be o e ed o sale a any ime.
P oduce s look a e he local de ails o ma ke o ganizing, on behal o hei cus ome s
bu wi h p o i as he goal. Thei abili y o shape he ma ke is examined in he discipline
o ma ke ing, which add esses he p ocess o ma ke o ma ion by i ms (B own 1951;
Kei h 1960; Hun 1976; Cochoy 1998; Ko le , Kelle and Che ne 2021). Indi idual
i ms de elop and sell b anded e sions o he p oduc , and he ma ke eme ges om he
i al y and mu ual adjus men o he main p oduce s. Such ma ke s a e widesp ead in
mode n de eloped economies, as has long been ecognized in heo ies o impe ec o
monopolis ic compe i ion and monopoly capi al (Chambe lin 1933; Robinson 1933;
Ba an and Sweezy 1966). While no single o ganizing body exis s, ade s mus obey he
ules o p ope y exchange o e seen cen ally h ough he legal sys em. La ge
p oduce s/selle s ca y ou nume ous o ganizing ac i i ies, isible hough seldom
pe cei ed as o ganizing. The numbe o ade s-cum-o ganize s is g ea e han one bu
- 15 -
emains small, con ined o a ew big i ms wi h ma ke powe . Since o ganizing o e laps
wi h ading, he e will be duali y.
4.4 Re ailing
In some ma ke s, a dedica ed o ganize may be p esen wi hou playing he pa o a
neu al, non- ading e e ee. This happens, o ins ance, when ade is o ganized by
specialis , p o i -making e aile s (Hamil on, Pe o ic and Senaue 2011; Dunne, Lusch
and Ca e 2014, Pa 2; Fe nie, Fe nie and Moo e 2015). They media e be ween
p oduce and consume , simpli y dis ibu ion, and ul il se e al unc ions o a ma ke
o ganize : p o iding a ading enue, deli e ing p oduc s, in o ming buye s abou he
i ems on sale, publishing p ices, and handling dispu es and complain s. O en he
p emises o he e aile will be called a ‘ma ke ’, as wi h supe ma ke s. Re ailing spawns
a class o agen s de o ed o o ganizing ade, hough hey a e no disin e es ed, neu al
e e ees. On he con a y, hey ha e a comme cial in e es in enla ging ade, wi h as
expendi u e on b anding, ma ke ing and ad e ising, and make p o i h ough a ma k-up
on p ices. Success ul e aile s exe ma ke powe o e bo h p oduce s om whom hey
pu chase and buye s o whom hey sell (Dobson and Wa e son 1999; Bloom and Pe y
2001; Bu and Spa ks 2003; Smi h 2016; Geyskens 2018). They do no ac as a single,
unbiased o ganize hoping o p ese e balance be ween selle s and buye s. O ganizing is
mixed wi h ading and concen a ed among he dominan i ms. Once again, his is
duali y.
4.5 Online ade
Recen de elopmen s in in o ma ion echnology ha e led o i ual ma ke s, wi h
elec onic paymen s and no physical loca ion. Al hough he need o physical o ganizing
is educed, he i ual ading space s ill has o be o ganized and egula ed. In some cases,
an e o is made o a ain dualism. On an in e ne auc ion si e such as eBay, he o ganize
aspi es o be an independen , non- ading auc ionee o e seeing compe i i e, one-o
- 16 -
exchanges among ma ke pa icipan s. As wi h physical auc ions, he compe i i e ideal
will be ha d o accomplish: in o ma ion may be open o e o , ou comes may be andom,
and he o ganize may be comme cially mo i a ed wi h a desi e o encou age sales.
T ade s using online ma ke s may ind hei own ways o in e ac ing ha ex end ou side
any o de ing imposed by he o ganize (Aspe s and Da 2022). In a mul isided ma ke ,
he ading pla o m a ies in i s ea men o di e en g oups o use s, b inging ou comes
ha a e op imal in some espec s bu no neu al o e en (E ans and Schmalensee 2008;
Rysman 2009). O he kinds o online ade make no a emp o keep o ganizing sepa a e
om ading. Many online e aile s p o ide he websi e h ough which ading occu s bu
also supply e e y hing on o e : hey a e simul aneously he ma ke o ganize and
exclusi e selle . Compe i ion will be limi ed, as i equi es he buye o sea ch he
websi es o al e na i e selle s. P ice-compa ison websi es can be a o m o i ual ma ke
place, compiling in o ma ion om online selle s, hough he in o ma ion is liable o be
selec i e and subjec o comme cial p essu es. Online ade esembles physical ade in
he endencies owa ds duali y.
5. Implica ions o o ganizing- ading duali y
Duali y o o ganizing and ading has a ious implica ions o he s udy o ma ke s. As
a gene al concep ual scheme, i is less es ic i e han dualism, which is an a i icial and
s ylized assump ion p opaga ed by economic models ha embody pe ec compe i ion.
E en i we admi he pe ec ly compe i i e ideal o be un ealis ic, i s linge ing au a has
amed how ading is pe cei ed and conduc ed (Callon 1998; MacKenzie 2006;
MacKenzie, Muniesa and Siu 2007). Ye ac ual ading alls sho o dualism, o ade s
in luence ma ke o ganiza ion. Duali y as a concep ual scheme can p o ide a iche , mo e
accu a e accoun o ma ke s ha allows hem o ake many o ms and be o ganized in
di e en ways. O ganizing can de i e om he in e ac ion o se e al pa ial o ganize s,
yielding he ma ke as he o ganized esul . Cen al, ex e nal o ganizing bodies will
- 17 -
no mally be p esen in he legal o e sigh o p ope y exchange, alongside ade s-cum-
o ganize s who compe e and adjus o each o he .
O ganizing- ading duali y can be seen as ha ing e iciency p ope ies, as discussed in
Sec ion 3, bu gi es no assu ance o e enness o equi y. Ma ke o ganize s, ex e nal and
in e nal, sha e he desi e o ease and inc ease ade. Volun a iness o ading should
ensu e ha all pa icipan s, in hei own es ima ion, gain om hei in ol emen .
S anda d a gumen s abou gains om ade con inue o apply, subjec o any ca ea s abou
misin o ma ion and manipula ion o ading beha iou . The dominan p oduce s/selle s
o e aile s will, ne e heless, ha e a p i a e in e es in eo ganizing he ma ke o hei
own ad an age. Thei ac i i ies go beyond p ice ixing o co e ma ke ing, ad e ising,
b anding and cus ome ela ions, all o which bea upon ading and mould i o boos
p o i s. Buye s, o en a my iad o uncoo dina ed indi iduals and households, can do li le
o esis his ma ke powe . The ou come will be biased owa ds he p oduce s/selle s o
e aile s bes able o eo ganize he ma ke .
Duali y can shed ligh on he di icul ies o egula ing ma ke s. Asymme ies in
ma ke powe a e allegedly emo able h ough egula ion, such ha he egula o is a
neu al e e ee enlis ed o b eak up oligopolies and p ese e balance. The in e en ion, i
success ul, would a ain dualism by sepa a ing o ganizing om ading: no ma ke
pa icipan s could eo ganize ade o hei p i a e bene i . P ac ical e o s a egula ion
ha e a cheque ed his o y and a e p one o egula o y cap u e, whe eby he egula o
colludes wi h dominan ade s (Dal Bό 2006; Ca pen e and Moss 2013). The abili y o
ade s o eshape he ma ke may blu he bounda ies be ween public and p i a e
in e es s. Regula o s may be in h all o ade s, consciously o o he wise. Delibe a e
suppo o p i a e in e es s – ma e ial cap u e – would amoun o malp ac ice, bu biases
may esul om cogni i e o cul u al cap u e: egula o s may ha e limi ed knowledge,
ely on ade s o expe ise and ail o de ec p i a e in e es s (Rex 2020; Sal elli e al.
2022; Rilinge 2023b). These di icul ies a e o eseeable wi hin a duali y scheme, as he
ade s’ p opensi y o eo ganize he ma ke is ea ed as no mal. O e u ning duali y in
a ou o dualism will p o e oublesome: i ms may be he local o ganize s o he
ma ke , keen o esis any challenge om ex e nal egula o s.
- 18 -
Ano he implica ion o duali y is o he di e si y o ma ke s and hei capaci y o
e ol e. Compa ed wi h dualism, duali y has mo e scope o a ia ion. I allows ade s
o augmen he ma ke by o ging o ganizing and ading oles, ac ing as ‘ins i u ional
en ep eneu s’ (Hwang and Powell 2005; Ha dy and Magui e 2008). Table 2 compa es
he e olu iona y capaci y o ma ke s wi h dualism and duali y. A hypo he ical ma ke
wi h o ganizing- ading dualism has li le leeway o e olu ion. O ganize s s ay aloo
om ade s and emain he same, o ganizing oles a e ixed, and he i em aded is
s anda dized. Dualism ules ou subsidia y o ganizing oles c ea ed and occupied by
ade s, o subsidia y ading oles based on selle -buye connec ions. The only a iable
is he popula ion o ade s, on he bo om ow o Table 2, as hey ha e he op ion o en y
o exi and can wi hd aw om he ma ke i unhappy wi h he p ice. This mus be implici
in a s a ic model, and he e olu iona y p ocess goes un ep esen ed. Unde
ma ke -clea ing equilib ium, he ma ke would adap h ough p ices alone o each an
e icien ou come wi h no changes in he p oduc aded o any hing else. The ma ke
o ganize s, gua dians o a gi en compe i i e s uc u e, a e no supposed o be agen s o
change.
In a ma ke wi h o ganizing- ading duali y, he a enues o e olu ion a e b oade . A
du able ma ke s uc u e is s ill p esen , so he co e o ganizing oles o he s a e and he
legal sys em p o ide he o ganized se ing o ade. The op wo ows o Table 2 a e he
same o dualism and duali y. The nex ou ows show ha duali y has g ea e
e olu iona y capaci y han dualism. Wi h duali y, ade s pe o m subsidia y o ganizing
oles ha ans o m he ma ke . P oduc s a e di e en ia ed h ough b anding, cus ome
loyal y is sough h ough ad e ising and ma ke ing, and selle s communica e wi h
buye s. Bo h non-p ice compe i ion and coope a ion among ade s become easible.
New oles and ela ionships a e added as he ma ke e ol es, old ones a e disca ded. In
esponse o echnical changes, some i ms may specialize in ce ain so s o e ailing and
ma ke o ganizing, building new compe ences and o e ing new se ices. All o his
un olds wi hin he ma ke s uc u e, which lends he ma ke i s con inui y and iden i y.
The popula ion o ade s a ies h ough en y o exi , as wi h dualism, bu is no longe
he only ou e o change.
- 19 -
Table 2 E olu iona y capaci y o ma ke s
O ganizing- ading ela ionship
Dualism Duali y
Popula ion o co e o ganize s Cons an Cons an
Co e o ganizing oles Fixed Fixed
I em aded S anda dized Di e en ia ed
Popula ion o subsidia y o ganize s/ ade s Ze o Va iable
Subsidia y o ganizing oles None Va iable
Subsidia y ading oles None Va iable
Popula ion o ade s Va iable Va iable
Among he ad an ages o o ganizing- ading duali y is ha i can app ecia e he
appa en ly con adic o y p ope ies o ma ke s and mesh wi h o he duali ies conside ed
in o ganiza ion heo y (Reed 1997; Janssens and S eyae 1999). P ime examples ele an
o ma ke s a e he duali ies o s abili y-change and con inui y-c ea i i y. Al hough
s abili y and change seem o be opposi es, o ming a dualism, hey a e in ac
in e dependen and o m a duali y (Fa joun 2010; Ma sh 2010; Su he land and Smi h
2011). O ganiza ions mus adap i hey a e o h i e, and hose ha accommoda e change
will be he mos s able. Ma ke s, as semi-decen alized o ganiza ions, epi omize his: he
ading can be adap ed and pa ially eo ganized wi hin a du able ading a ena.
Con inui y and c ea i i y may also seem opposed, bu he no ms and ou ines upheld by
an o ganiza ion need no s i le c ea i i y and may succou i (G ae z and Smi h 2008,
2009; Sonenshein 2016; Fo wengel, Schüssle and Sydow 2017; Sydow 2018). In a
ma ke , he open access o p oduce s/selle s ensu es ha new ideas can be ied ou . Such
inno a ions ha e a des uc i e side, exp essed by he Schumpe e ian concep o ‘c ea i e
des uc ion’, i sel a duali y (Schumpe e 1987, Chap e 7; Me cal e 1998). C ea i i y
unde mines o me ading habi s and o ces u no e in ma ke powe , so i comes wi h
des uc ion, bu e en he mos d ama ic changes occu inside ma ke s uc u es. Wi hou
- 20 -
he ma ke , he comme cial p omise o new p oduc s could no be es ed. Ma ke s
engende con inui y and c ea i i y, nei he ele a ed abo e he o he .
Duali y o o ganizing and ading can be ela ed o he complexi y o ma ke s. In
academic usage, complexi y e e s o a ie y wi hin a s uc u ed en i onmen : a complex
sys em main ains i s iden i y o e ime, bu gene a es mul iple, unp edic able ou comes
(Rosse 1999; Hodgson 2003; Elsne 2017). I is s uc u ed ye luid, o de ed ye un uly,
s able ye changeable. The jux aposi ions and in e ac ions e oke duali ies, hence he
kinship be ween complexi y and duali y (Smi h and G ae z 2006; Mo çöl 2010). Ma ke s,
wi h hei semi-decen alized o ganiza ion, o e a p ime example o complexi y. Ma ke
ading can blend p ice sensi i i y, ole compliance, b and loyal y and ela ionship
o ma ion, in a composi e me hod o o ganizing ha de ies any ma ke s-o -hie a chies
assump ions (Elsne , Hocke and Schwa d 2010). Compulso y selle and buye oles a e
incomple e, o he ading oles a e op ional, and ade s ha e oom o a ia ion in how
hey ade. P oduce s o e aile s may be ea ly adop e s o new echnologies, acqui ing
compe ences ha guide he o ganizing, p ac ice and egula ion o ma ke ade. All he
a ia ion and adap a ion occu s wi hin a single, du able ma ke . The upsho is
complexi y, in which a common ma ke s uc u e gi es ise o di e se, e ol ing and
unp edic able ade.
6. Conclusion
A duali y pe spec i e can highligh he dis inc i eness and peculia i y o ma ke s as
semi-decen alized o ganiza ions. Ma ke s do ha e cen alized elemen s, especially in
he legal o e sigh o p ope y exchange, bu hese a e ne e qui e comp ehensi e and
ha e o be supplemen ed wi h u he o ganizing by ade s. O ganizing is no isola ed
om ading, as in he hypo he ical ideal o dualism, and hey coexis as a duali y. Selle s
and buye s communica e wi h each o he , p o ide in o ma ion, di e en ia e i ems on sale,
- 21 -
se p ices, c ea e ma ke niches, and bond wi h known ading pa ne s. Much ma ke
ade u ns on new o ganizing and ading oles, de ised and pe o med by he ade s
hemsel es so as o shape ade wi hin he o e all ma ke s uc u e. The ma ke is hen
he o ganized esul o ac ions aken by se e al o ganizing bodies, including ade s.
O ganiza ion by ade s, while depa ing om he hypo he ical ideal, may ha e
ad an ages: local knowledge o agen s wi h ading expe ience may be i al in suppo ing
ade, ensu ing i s s abili y and inc easing i s olume. These a e he usual bene i s called
upon o explain why he o ganiza ional backg ound o ma ke s is impo an .
O ganizing- ading duali y has o he bene i s: i le s ma ke s e ol e, assis s p oduc
inno a ion, pe mi s di e si y o ade, and p omo es coope a i e beha iou . Compe i ion
will be channelled in o non-p ice o ms less suscep ible o being ola ile.
The d awback is ha duali y os e s asymme y be ween selle s and buye s. In many
ma ke s, he p oduce s/selle s a e la ge co po a ions wi h ma ke ing depa men s ha can
manipula e ade. The buye s, agmen ed and a g ea e in numbe , a e o dina y people
and households. P oduce s/selle s ca y ou he in e nal o ganizing o he ma ke in a
biased manne o bols e hei ma ke powe . Cu bing his powe h ough egula ion will
no be s aigh o wa d, as he egula o s may be pulled in o he same une en duali y and
ail o ac as neu al a bi e s. O he emedies o asymme y would equi e coo dina ion
among buye s, so as o ha e a bigge impac on ma ke o ganizing and esis he migh o
he p oduce s/selle s. This oo aces hu dles, gi en he size o mul ina ional co po a ions
and hei huge expendi u es on ma ke ing and ad e ising.
Semi-decen alized o ganiza ion is undamen al o ma ke s and, in he spi i o duali y,
i s posi i e and nega i e ai s a e bes unde s ood as being in e wo en. Sus enance o
ade, wi h he po en ial o collec i e gains, comes wi h ou comes il ed owa ds he
dominan ade s-cum-o ganize s. Ma ke s a e in ica e and adap able o an ex en ha
makes hem ambiguous: hei i ues come wi h blemishes. The ambigui y means ha
local de ail emains c ucial in e alua ing any pa icula ma ke .
- 22 -
Acknowledgemen s
I am g a e ul o E e Chiapello and he h ee anonymous e e ees o hei help ul
commen s and ad ice.
Decla a ions
Funding: No unding was ecei ed o assis wi h he p epa a ion o his a icle.
Compe ing in e es s: The au ho decla es no compe ing in e es s.
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