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. Commons focus is on attainable ethical ideals which he terms identical in economics to the notion of reasonable value. Commons writes that, "but if it is attainable as shown by the best examples that survive, then a theory of the attainable is as much a scientific theory as is a theory of the attained". He also writes about bringing those individuals and entities that are average or below average to above average to the most attainable ethical ideal. Commons is attempting to set an ideal that pushes organizations and individuals to the high level, yet still attainable of practices and activities.
At the same time, Commons recognizes that there are limiting factors that prevent those at the above average level from going further. These limits include: 1) efficiency, 2) scarcity, 3) conflict, 4) working rules, 5) habitual assumptions and many other issues. He also writes about the "unfinished but attainable future" which makes one think about something that is always in the future and always pushing individuals and organizations to be better.
In using Webers ideal type, Commons identifies two flaws which are crucial in what understanding what he was trying to acheieve in this section. First, the Weberian ideal type was not transactional or in other words looking at relationships between human actors. Secondly, the idea that custom is about the past. In Commons view, customs are about setting the stage for future transactions or his concept of futurity.
I find this section of the book very informative to Commons methodology and yet I cannot locate much literature on exploring the Weber and commons connection. More to come.
Weber talks about ethical ideals, some of which are attainable and unattainable. Commons focus is on attainable ethical ideals which he terms identical in economics to the notion of reasonable value. Commons writes that, "but if it is attainable as shown by the best examples that survive, then a theory of the attainable is as much a scientific theory as is a theory of the attained". He also writes about bringing those individuals and entities that are average or below average to above average to the most attainable ethical ideal. Commons is attempting to set an ideal that pushes organizations and individuals to the high level, yet still attainable of practices and activities.
At the same time, Commons recognizes that there are limiting factors that prevent those at the above average level from going further. These limits include: 1) efficiency, 2) scarcity, 3) conflict, 4) working rules, 5) habitual assumptions and many other issues. He also writes about the "unfinished but attainable future" which makes one think about something that is always in the future and always pushing individuals and organizations to be better.
In using Webers ideal type, Commons identifies two flaws which are crucial in what understanding what he was trying to acheieve in this section. First, the Weberian ideal type was not transactional or in other words looking at relationships between human actors. Secondly, the idea that custom is about the past. In Commons view, customs are about setting the stage for future transactions or his concept of futurity.
I find this section of the book very informative to Commons methodology and yet I cannot locate much literature on exploring the Weber and commons connection. More to come.
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