Embeddedness, a sociological theory of market transactions

The notion of "embeddednes" is examined from the stance that there is not and cannot be a self-regulated marketplace. All markets are embedded. Market transactions are carried out in a tangle of interpersonal relations, formal rules, tools and shared ideas. These embedding conditions limit such transactions while making them possible. They are not just the normative setting for decision-making but, indeed, the very basis of transactions, as resources are continually tapped for actions. The notion of embeddednes calls for research to work out useful approaches for developing a sociological theory of market exchanges. (C) 2002 Editions scientifiques et medicales Elsevier SAS. All rights reserved.