whether scholars use (a)networks(Burt 1992; come to be created and sold,and in how the Granovetter 1974,2005;White 1981,2002), local cultures of particular markets form what (b)institutions(Dobbin 1994;Fligstein 1990, institutionalists call the institutionalization of 2001;Powell DiMaggio 1991),or (c)perfor- particular markets. mativity (Beunza Stark 2004,Callon 1998, Although these three approaches encom- Callon Muniesa 2005,MacKenzie Milo pass a large portion of the work done in the 2003,MacKenzie 2005)as explanatory mech- sociology of markets,they are by no means anisms in the emergence and ongoing dynam-exhaustive.Along with considering these par- ics of markets.Scholars in the network tradi-ticular perspectives with the goal ofextracting tion have focused on relational ties between what sociologist have learned about markets actors as the material ofsocial structure.Insti-and what remains to be resolved,we consider tutionalists focus on how cognition and action in this review the degree to which the differ- are contextualized by market rules,power,and ent theory groups offer incomplete represen- norms.The performative school of thought tations of the social structuring of markets. views economic action as a result of calculative The division of the field into networks,in- processes involving the specific technologies stitutions,and performativity excludes other and artifacts that actors employ. theoretical perspectives that should also be at This division of the field overemphasizes the core of thinking about markets as social the extent to which these perspectives are structures.We focus on two important ap- in fact separate theory groups.All three ap- proaches that have been underplayed in the proaches rely on viewing markets as social are- literature:political economy and population 宝 nas where firms,their suppliers,customers, ecology. workers,and government interact,and all Political economy has pioneered thinking three approaches emphasize how the connect- about the linkages between states,law,and 的 edness of social actors affects their behavior. markets and the historical emergence of sys- Network analysis is a technique for finding tems of governance.The literature on the social structures in relational data.It is not a comparative study of capitalist arrangements 1002 theory of the underlying relationships in the and their effects on various outcomes,includ- data and the mechanisms that they represent.ing economic development,is part and par- Scholars who use network techniques invoke cel of the sociology of markets.Institutional 2 theoretical constructs like power,resource de- theory is the approach that most frequently pendence,cooptation,information,and trust adds political economy into its analyses.It to explain the social structures that emerge focuses on the role of governments and law from their analyses.These mechanisms are in the creation of particular features of mar- common to institutional theory and to other kets,for example the types of alliances and theories relevant to the sociology of markets. forms of cooperation that are legal or forms of Institutional theorists are interested in how property rights(Campbell Lindberg 1990, field-level phenomena diffuse to make fields Carruthers Ariovich 2004).But network isomorphic,often through social networks theorists and scholars interested in perfor- (Davis 1991).Performativists have explicitly mativity have generally ignored the possible connected their approach to network theory effects of government and law and the role in what Callon(1998)calls the actor-network of preexisting relationships between the own- approach.The actor-network approach views ers of firms,managers,workers,and govern- notonly humans,butalso objects andartifacts,ments on market processes.This makes their techniques,and ideas as agents embedded in accounts of particular markets incomplete networks of calculative relations.In addition, Population ecology is the branch of or- performative approaches overlap with institu- ganizational theory that deals most directly tional theory in their interest in how products with the effects of competition on the www.anmalreviews.org The Sociology of Markets I07ANRV316-SO33-06 ARI 24 May 2007 10:6 whether scholars use (a) networks (Burt 1992; Granovetter 1974, 2005; White 1981, 2002), (b) institutions (Dobbin 1994; Fligstein 1990, 2001; Powell & DiMaggio 1991), or (c) perfor￾mativity (Beunza & Stark 2004, Callon 1998, Callon & Muniesa 2005, MacKenzie & Milo 2003, MacKenzie 2005) as explanatory mech￾anisms in the emergence and ongoing dynam￾ics of markets. Scholars in the network tradi￾tion have focused on relational ties between actors as the material of social structure. Insti￾tutionalists focus on how cognition and action are contextualized by market rules, power, and norms. The performative school of thought views economic action as a result of calculative processes involving the specific technologies and artifacts that actors employ. This division of the field overemphasizes the extent to which these perspectives are in fact separate theory groups. All three ap￾proaches rely on viewing markets as social are￾nas where firms, their suppliers, customers, workers, and government interact, and all three approaches emphasize how the connect￾edness of social actors affects their behavior. Network analysis is a technique for finding social structures in relational data. It is not a theory of the underlying relationships in the data and the mechanisms that they represent. Scholars who use network techniques invoke theoretical constructs like power, resource de￾pendence, cooptation, information, and trust to explain the social structures that emerge from their analyses. These mechanisms are common to institutional theory and to other theories relevant to the sociology of markets. Institutional theorists are interested in how field-level phenomena diffuse to make fields isomorphic, often through social networks (Davis 1991). Performativists have explicitly connected their approach to network theory in what Callon (1998) calls the actor-network approach. The actor-network approach views not only humans, but also objects and artifacts, techniques, and ideas as agents embedded in networks of calculative relations. In addition, performative approaches overlap with institu￾tional theory in their interest in how products come to be created and sold, and in how the local cultures of particular markets form what institutionalists call the institutionalization of particular markets. Although these three approaches encom￾pass a large portion of the work done in the sociology of markets, they are by no means exhaustive. Along with considering these par￾ticular perspectives with the goal of extracting what sociologist have learned about markets and what remains to be resolved, we consider in this review the degree to which the differ￾ent theory groups offer incomplete represen￾tations of the social structuring of markets. The division of the field into networks, in￾stitutions, and performativity excludes other theoretical perspectives that should also be at the core of thinking about markets as social structures. We focus on two important ap￾proaches that have been underplayed in the literature: political economy and population ecology. Political economy has pioneered thinking about the linkages between states, law, and markets and the historical emergence of sys￾tems of governance. The literature on the comparative study of capitalist arrangements and their effects on various outcomes, includ￾ing economic development, is part and par￾cel of the sociology of markets. Institutional theory is the approach that most frequently adds political economy into its analyses. It focuses on the role of governments and law in the creation of particular features of mar￾kets, for example the types of alliances and forms of cooperation that are legal or forms of property rights (Campbell & Lindberg 1990, Carruthers & Ariovich 2004). But network theorists and scholars interested in perfor￾mativity have generally ignored the possible effects of government and law and the role of preexisting relationships between the own￾ers of firms, managers, workers, and govern￾ments on market processes. This makes their accounts of particular markets incomplete. Population ecology is the branch of or￾ganizational theory that deals most directly with the effects of competition on the www.annualreviews.org • The Sociology of Markets 107 Annu. Rev. Sociol. 2007.33:105-128. Downloaded from www.annualreviews.org Access provided by Shanghai Jiaotong University on 02/04/15. For personal use only