Textual exegesis is used to show that Marx's concept of social labor is transhistorical, referring to a collective activity of humans as a species. The collective nature of labor is suspended in capitalist production because of the anarchic character of market relations. But the suspension is skin deep: The sociality of labor asserts itself in a mediated manner through the alienated empowerment of goods with value. This is commodity fetishism, which vanishes when relations of production become actually collective?matching the transhistorical (...) essence of labor. Marx's concept of social labor is adjudged inadequate. It amounts to asserting that the actions of agents could be ex ante calculated according to a global rationality. In this respect, Marx's concept of social labor is reminiscent of the equally deficient notion of perfect competition in mainstream neoclassical economics. (shrink)

This paper discusses recent attempts by economists to analyze institutional structure using individualist methodology. It is argued that developments in game theory, as well as advances in the analysis of transactions costs, have proved surprisingly fertile in yielding insights into the nature and structure of institutions. The example of the university is used to illustrate the ways in which the economic approach to institutions can be applied. In particular, the nature of academic contracts and the non?profit status of universities are (...) related to the literature on contractual hazards. Although methodologically very different from sociological or historical analysis of institutions, it is argued that the new institutional economics may provide a bridge permitting greater contact between hitherto almost entirely separate disciplines. (shrink)

SUBJECTIVISM, INTELLIGIBILITY AND ECONOMIC UNDERSTANDING: ESSAYS IN HONOR OF LUDWIG M. LACHMANN ON HIS EIGHTIETH BIRTHDAY Edited by Israel M. Kirzner New York: New York University Press, 1986. 319 pp., $35.00.

THE ECONOMICS OF TIME AND IGNORANCE by Gerald P. O'Driscoll, Jr. and Mario J. Rizzo New York: Basil Blackwell, 1985. 261pp., $34.95 O'Driscoll and Rizzo, two leading exponents of the Austrian subjectivist school of economics, claim to provide an original and powerful challenge to mainstream neoclassical economics. They also argue that there is much common ground between the Austrian approach and the recent development of Post Keynesian analysis. In this essay, the validity of such claims is analyzed, and the shortcomings (...) of the Austrian school's approach vis?à?vis Post Keynesian and neoclassical analysis is developed. (shrink)