Appendix 2 Markets from Networks- précis of the book.pdfVIP

Appendix 2: Markets from Networks - précis of the book Harrison C. White I outline this story on production markets from six angles: first, their emergence with context upstreams (purchasers) and downstreams (buyers); second, a price profile by volume mechanism that bridges procurement to production to buyers; third, explicit modeling of markets as higher level actors with a given context; fourth, mapping the whole spectrum of viable markets; fifth, how agency accommodates within such organization; and sixth, tugs-of-war cross-stream in a sector of markets. Social construction of this self-adjusting mechanism suggests predictions not conceived by existing economic modeling around cognitions. The windup of the book notes how building of culture is companion to this organization story. References are to White (2002). #1 Context and emergence 1A. ONE-WAY FLOW: from suppliers upstream toward purchasers downstream through producer firms as atoms aligned within a market molecule— generalizing the division of labor into role structure along this stream for firms within industries, … Chapter 1 IB. evolved from PUTTING-OUT SYSTEMS of previous centuries where further division of labor was grafted into mercantile systems of trade (in household production, subsistence agriculture, etc.) that generated banking systems able to sustain such cycles of generalized exchange. Chapter 1 1C. KNIGHTIAN UNCERTAINTY of business is what induces firms to huddle as a production market and thus gain identity downstream as a whole line of business with a quality niche for each firm.