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PRICING, VALUATION AND SYSTEMS
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This volume re-introduces American neoinstitutional economics as an alternative to the neoclassical orthodoxy. It argues that neoinstitutionalism provides a pragmatic analysis that confirms that most prices and costs are set by empowered discretionary agents, not by impersonal free markets. Similarly, the institutional fabric of contemporary economic systems is shown to be defined by agents with power, not natural laws or "ISM" models. The author's analysis is based upon the instrumental value theory of neoinstitutionalism rather than the utility value theory of neoclassicism. It challenges the price theory "heartland" of neoclassical theory and the "market stock" approach to restructuring Eastern Europe and offers neoinstitutional alternatives.
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