Although today one constantly encounters references to “the
market”, there is of course, as Bromley (1997) reminds us, no
such thing. Markets are socially constructed, ordered domains
of exchange through which individuals can arrange the
transaction of goods and services (Polanyi, 1944; Bromley,
1997), and the vast diversity of existing markets reflects the
diversity in the underlying “prior collective notions and expressions
ofwho counts, and what is valuable and useful” (Bromley,
1997:1391). An evenmore misleading notion is that of the “free
market.” Markets, especially efficient ones characterized by low
transaction costs, require supporting institutions that facilitate
information flows about exchange opportunities, reduce negotiating
costs among market participants, and ensure the
enforceability of contracts (Bromley, 1997). All of these require
some formof community or government involvement.Markets
are embedded in a larger institutional context that both enables
and restricts the behavior of participants.
meaning. This is why economic valuation is said instrumental
and in most cases utilitarist. Any more sophisticated
reason to conserve biodiversity must be considered
through the filter of human preferences
Although today one constantly encounters references to “themarket”, there is of course, as Bromley (1997) reminds us, nosuch thing. Markets are socially constructed, ordered domainsof exchange through which individuals can arrange thetransaction of goods and services (Polanyi, 1944; Bromley,1997), and the vast diversity of existing markets reflects thediversity in the underlying “prior collective notions and expressionsofwho counts, and what is valuable and useful” (Bromley,1997:1391). An evenmore misleading notion is that of the “freemarket.” Markets, especially efficient ones characterized by lowtransaction costs, require supporting institutions that facilitateinformation flows about exchange opportunities, reduce negotiatingcosts among market participants, and ensure theenforceability of contracts (Bromley, 1997). All of these requiresome formof community or government involvement.Marketsare embedded in a larger institutional context that both enablesand restricts the behavior of participants.meaning. This is why economic valuation is said instrumentaland in most cases utilitarist. Any more sophisticatedreason to conserve biodiversity must be consideredthrough the filter of human preferences
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