Institutional isomorphism vs. the free market

A pure capitalist society is predicated on neoclassic theory. This theory is based on the rational expectation that people try to maximize their utility and firms try to maximize their profits while everybody does this based on the available information. In other words, people know what they want, t...

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Bibliographic Details
Main Authors: Bencikova Dana
Cole David
Format: Article
Published: 2011
Series:Proceedings of the "Scientific Management" and Management Science Today International Scientific Conference
Kulcsszavak:Beágyazottság, Mathew-effektus
Online Access:http://acta.bibl.u-szeged.hu/57881
Description
Summary:A pure capitalist society is predicated on neoclassic theory. This theory is based on the rational expectation that people try to maximize their utility and firms try to maximize their profits while everybody does this based on the available information. In other words, people know what they want, they will try to do their best to achieve their desires with the minimum amount of effort, and at the same time companies will try to make the most amount of money from their customers. However, this theory ignores the influences of non-market institutions on society. People do make decisions that can be counter-productive to themselves, to society, and to future generation. The answer to what drives people to make those decisions lies in their social and cultural background and can be looked at from psychological point of view. In our research we are trying to find out what preferences young people have concerning their future careers and determine reasons for those choices. Based on a survey conducted among students of Faculty of Economics, our paper demonstrates how certain institutions become so strong that the entity itself becomes more important than the task the institution was originally purported to serve.
Physical Description:49-72
ISBN:978-963-306-176-3