Capitalism as a System of Contingent Expectations: Toward a Sociological Microfoundation of Political Economy

Political economy and economic sociology have developed in relative isolation from each other. While political economy focuses largely on macrophenomena, economic sociology focuses on the level of social interaction in the economy. The paper argues that economic sociology can provide a microfoundation of political economy beyond rational actor theory and behavioral economics. Based on a discussion of the four Cs of capitalism (credit, commodification, creativity, and competition), it is argued that macroeconomic outcomes depend on the “contingent expectations” actors have in decision situations. [MPIfG Discussion Paper 12/4]. URL:[http://www.mpifg.de/pu/mpifg_dp/dp12-4.pdf].