By Mark Granovetter
How behavior and institutions are affected by social relations is one
of the classic questions of social theory. This paper concerns the
extent to which economic action is embedded in structures of social
relations, in modern industrial society. Although the usual neoclas-
sical accounts provide an "undersocialized" or atomized-actor ex-
planation of such action, reformist economists who attempt to bring
social structure back in do so in the "oversocialized" way criticized
by Dennis Wrong. Under- and oversocialized accounts are paradox-
ically similar in their neglect of ongoing structures of social rela-
tions, and a sophisticated account of economic action must consider
its embeddedness in such structures. The argument is illustrated by
a critique of Oliver Williamson's "markets and hierarchies" research
program.





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