Design for values in economics

Abstract

We distinguish the subjectivist value theory, providing the basis for neoclassical economics (NCE) and new institutional economics (NIE), and the social theory of value, underscoring original institutional economics (OIE). In NCE design involves a comparison of the structural characteristics and conduct in a real world market with the theoretically ideal competitive market. If any problems are identified, corrective action should (re)establish competition. NIE would additionally examine the characteristics of the transactions and potential external effects and evaluate the adequacy of the prevailing market institutions. The focus is on designing the right institutions for markets to reveal the subjective values of actors. OIE looks at design in a dynamic, holistic, and systemic way and considers “the market” as one of the possible tools out of many to realize social (moral) values. Individual and common values emerge and are constituted in interaction, being judged and deliberated in their specific context of time and place regarding their consequences for society.