In the chapter Reasonable Value in Institutional Economics, Commons spends a significant amount of time on thinking about the sociologist Max Weber. One point emphasized is Weber being interpreted by Commons as saying that, "it converts the whole process of economic theorizing from a theory in the older sense of the logical consistency of reality, to a mere methodology of constructing intellectual tools to be used in investigation." Here we see a very clear statement of how Commons views the role of abstractions and general principles that are set outside of the empirical reality. I don't believe commons uses the word "mere" to trivialize the statement but rather as an expression that theory is not meant to reflect reality per se, as it might in the physical or biological sciences, but rather it is a mental model for the systemic understanding of goings on in the world. Weber talks about ethical ideals, some of which are attainable and unattainable. Commo...
This blog has been setup to explore the ideas and philosophy of the American institutional economist John R. Commons.