The Market - What Lies Beneath?

This article sets forth a theory of institutionalized markets. It presents a view of the market that avoids the rhetorical policy stance of "government versus the market" by showing that market performance is driven by i) law, ii) technology and ii) social norms. It argues that institutionalized markets exist through the active role of government not by government forbearance. The state stands as an essential complement to institutionalized markets and not a substitute for them. Further, it explores the government's ongoing role in legitimizing markets, driving certain technologies, and fashioning social norms all of which impact a nation's market performance