WK 1 READING MN2002

• Who is the author of "Comparative and Historical Approaches to Economic Sociology"?

  Frank Dobbin
• What is the commonsense view regarding economic behavior?

  Natural laws govern economic life
• What does the prevailing view in economics suggest about economic behavior?

  It is determined exogenously by external forces
• Who argued that the comparative method is the only valid method in social sciences?

  John Stuart Mill and Émile Durkheim
• What does the comparative method require to establish causality?

  Comparison of two cases
• How do large-scale statistical studies sort out causes of social phenomena?

  By looking for correlation across many cases
• What is the role of randomization in laboratory studies?

  To identify causal relations
• What challenge does Smelser point out regarding comparative analysis?

  Laboratory-like conditions are seldom available
• What do most analysts try to show in comparative studies?

  Coexistence of cause and consequence
• What do Skocpol and Somers advise regarding country comparisons?

  Compare countries alike on most dimensions
• Why do many studies compare across countries and over time?

  To rule in certain explanations and rule out others
• What was the purpose of comparing industrial policies during the Great Depression?

  To find how nations reversed their decline
• What distinguishes economic sociology from economics?

  Focus on behavior of firms and institutions
• What are the three groups of studies reviewed in economic sociology?

  • Causal role of power
  • Causal role of institutions
  • Causal role of networks and roles
• Who pioneered the historical approach to economic sociology?

  Karl Marx
• How did Marx view the relationship between economic relations and ideas?

  Economic relations shape ideas
• What is Marx's main insight regarding economic history?

  Production processes and social relations drive it
• How does Marx's view of self-interest differ from neoclassical economics?

  Self-interest shapes the world to advantage
• What is the title of Marx's magnum opus?

  Das Kapital
• What historical transition did Marx chronicle in The German Ideology?

  The transition from feudalism to capitalism
• How did the rise of craftspeople and manufacturers challenge feudal lords?

  By selling wares and building production capacity
• What did Marx argue about the modern state and capitalism?

  It imposes capitalist rules under political liberalism
• What do modern power theorists emphasize in economic life?

  The role of conflict and power
• What are the four important changes in American firms since the mid-nineteenth century?

  1. Rise of huge manufacturing firms
  2. Consolidation of manufacturing industries
  3. Dominance of diversified conglomerates
  4. Shift to single-industry behemoths
• What did Charles Perrow argue about the rise of giant firms?

  It was due to weak regulation by the state
• How did American mill owners prefer to produce textiles?

  Using capital-intensive methods
• What did William Roy argue about the rise of oligopolistic firms?

  Power dynamics were key
• How did antitrust laws affect small and large firms?

  Gave big firms an advantage over small ones
• What did Dobbin and Dowd find about antitrust enforcement in railroading?

  It stimulated a merger wave
• What was the role of finance managers in the rise of diversified conglomerates?

  They promoted a new theory of the firm
• What did institutional investors find difficult about diversified conglomerates?

  Placing a value on them
• How did executive compensation influence firm behavior after 1975?

  Executives catered to investors based on stock performance
• What change occurred in corporate mergers and acquisitions by 1990?

  Shifted to focused firms in the same industry
• What are the key factors influencing the evolution of corporate forms in America?

  • Power dynamics among groups
  • Changes in regulations
  • Influence of finance managers
  • Role of institutional investors
• What strategy did rms adopt to diversify their assets?

  Buying firms in other industries
• Which company did General Electric buy?

  NBC
• Who bought Nabisco?

  1. J. Reynolds
• Why were big firms buying others in the same industry by 1990?

  To take advantage of their core competence
• Which two companies were involved in a notable acquisition mentioned?

  Daimler and Chrysler
• What did institutional investors and analysts find difficult to value?

  Diversified conglomerates