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“Talk with your family about [Medicare] Part D over Thanksgiving dinner”: How markets require bounded relationality

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ObamapardonsWhiteHouseTurkey2014

Question: What do the following three scenarios have in common?

Scenario A.  Congrats, you’re turning 65 years old!

You’re turning 65 years old.  In the US, if you have worked enough units, you are eligible for Medicare; you must select health insurance by choosing among traditional Medicare and HMO plans.  You also need to choose insurance that will cover  your current or anticipated prescription medications.  Depending on where you live, this could involve comparing around 50 different plans.

You start by consulting the Medicare booklet and wading through the flood of mail from insurance providers.  Despite this information, you’re having difficulties understanding the differences among plans and determining how much plans will charge for your medications.  Moreover, you’re not quite sure which medications that you’ll need in the upcoming year.  Each year after this, you’ll have an almost two-month-long window for making these decisions – a period that is happening now, ending Dec. 7.

If you have a long life, you’ll have plenty of practice working with this market.  How do you select a plan appropriate to your needs right now and then in the future?

Scenario B.  Congrats, you’re getting ready to enter high school!

You are a student at a NYC public middle school.  Since students are not automatically assigned to public high schools, you and your family must choose from among 750 programs and rank order your choices.  (If you are two years old or older, your parents must do the same for public pre-K and kindergarten school programs.)  To learn about your options, you can look at a directory of descriptions of these programs and then research each school online.  If possible, you and your family will also attend information fairs and schools’ open houses and tours, where you might be asked to fill out additional forms or leave your information.

Some schools have different criteria for what kinds of prospective students they prioritize, and most selective programs don’t provide rubrics for how they rank prospective students – information crucial for ascertaining your chances of acceptance.  After you submit up to 12 rank-ordered choices, an algorithm, modelled after a medical residency matching program designed by a economist, will generate a match based on schools’ priorities and your listed options.  And, btw, charter schools and private schools have their own admissions processes and admissions deadlines.

How do you choose and rank public high school programs?  Should you try to maximize your choices by also applying to charter schools and, if you have the financial resources, private schools?

Scenario C.  Congrats, you’re rich!

You have amassed enviable, immense wealth.   But, your mattress is bursting, and you distrust regular banking.  And, for whatever reason, you’re not fond of having the state taking a portion to support the common good, social insurance, military spending, etc.  Thinking ahead, you worry about your family having unfettered access to your financial legacy; relatives might fritter away that wealth!  Also, you have a few relationships that other family members don’t (yet) know about, and you want to make sure that those loved ones are also taken care of after your inevitable passing.  So, what to do?

Answer: Most likely, you’ll need what I call “bounded relationality” to assist you with entering complex markets and making exchanges.   To explain what bounded relationality is, I’ll preview excepts from my advance, online first article “Bounded relationality: how intermediary organizations encourage consumer exchanges with routinized relational work in a social insurance market.”

The bounded relationality concept combines two of my favorite theories: (1) economic sociology’s relational work by Viviana Zelizer, Fred Wherry, and Nina Bandjel* and (2) Herbert Simon’s theory about how organizations compensate for people’s bounded rationality, or difficulties with making decisions.

During several years of my research on organizations that support older adults, I observed workshops and meetings for organizational representatives and professionals, including social workers, on topics such as how to select Medicare insurance plans.

At one of these workshops, a representative from the Centers for Medicare & Medicaid Services, described officials’ hopes that families would discuss prescription plans at family get-togethers: ‘We tried to say, “Talk with your family about [Medicare] Part D over Thanksgiving dinner,” but we don’t know if people did.’   His comment revealed how much the market relies upon relational work, or connections formed and sustained with other persons (Zelizer 2012) and organizations.

Using observations of US governmental, advocacy, and human service organizations’ (GAHSOs) talks, I show how these intermediary organizations endorsed “bounded relationality” when teaching conventions for participating in the market of social insurance.  Unlike conventional consumer goods and services markets, insurance options are difficult to evaluate and exchanges are challenging to switch.  Decisions are also consequential, with suboptimal decisions impacting personal well-being and requiring support or intervention by family members, if they are available.

Read more about bounded relationality after the jump: Read the rest of this entry »

“Organizations, Markets, & the State” course at the Graduate Center, CUNY, offered for this spring 2020

Are you a graduate student in the Inter-University Doctoral Consortium?*  If so, please consider taking my “Organizations, Markets, & the State” class at the Graduate Center, CUNY.   At student request, I am teaching this class on the sociology of organizations this spring 2020 on Wednesdays @11:45am-2:45pm. Our first class meets on Wed., Jan. 29, 2020.

 

In addition to covering the classics of organizational research, the course includes cutting edge organizational research.  The course also incorporates topics and assigned readings based on enrolled students’ interests.  When I’ve taught this class in past semesters, guest speakers, including Nicole P. Marwell, Jeff Sallaz, Michel Anteby, Caroline W. Lee, Frederick Wherry, Pilar Opazo, and Elizabeth Popp Berman, have discussed their research projects.  (And, Fabio Rojas joined us for a special get-together during a visit to NYC!)

One of the aims of the class, besides learning substantive content, is to develop a local community of emerging scholars whose relationships spanning local, US, and international boundaries.  So, if you are an organizations researcher who is located or will happen to be in the NYC area during spring 2020, please email me about presenting your research!  We’ve also learned about professional development with guests, as participants are eager to learn about different kinds of institutions and career paths.

 

Here is the spring 2020 course description:

Organizations, Markets, & the State, Spring 2020

Graduate Center

Prof. Katherine K. Chen

Course Description

How can people coordinate action across growing groups in creative versus conventional ways?

How can people organize in ways that widen versus reduce power differentials among members?

How do people and organizations hoard advantages for a select few versus ensuring more equal access to all?

How do organizations fend off versus embrace market ideology, and how do organizations encourage members to adopt these perspectives?

Organizations are crucial actors in contemporary society, and they are also sites where many of us expend significant efforts connecting with or coordinating collective action.  Despite their central role in shaping our experiences from education to the workplace to governance, organizations are often overlooked or taken-for-granted among researchers and laypersons.  When researchers do study organizations, they typically pay little critical attention to power dynamics and organizing possibilities.

Building upon more critical perspectives, participants will learn why organizations form, how they develop, and how they can exacerbate or alleviate inequalities.  We will also discuss organizations’ relations with the state and markets, and how these relations affect action.  We will cover a variety of organizational forms, from conventional bureaucracies to networked firms to democratic organizations, with a focus on participants’ organizational fields of interest.  Theories studied incorporate the classics, as well as cutting edge synthetic work like Strategic Action Fields (SAFs), racialized organizations, and relational inequality theory (RIT)’s inequality-generating mechanisms.   Methodological approaches covered include ethnography, interviews, and other qualitative methods, and quantitative analyses.

This course supports deepening participants’ substantive knowledge, including preparing for comprehensives, extending cross-over expertise in a substantive area (i.e. social movements, urban sociology, stratification, education, cultural sociology, etc.), and designing and carrying out research.  In addition, this course aims to both promote professional development and forming a community of supportive scholars for emerging research.

*If you are a student at one of the below schools, you may be eligible, after filing  paperwork by the GC and your institution’s deadlines, to take classes within the Consortium:

Columbia University, GSAS
Princeton University – The Graduate School
CUNY Graduate Center
Rutgers University
Fordham University, GSAS
Stony Brook University
Graduate Faculty, New School University
Teachers College, Columbia University
New York University, GSAS, Steinhardt

Written by katherinechen

November 14, 2019 at 11:21 am

asa2019 live tweets

With ASA and AOM annual meetings simultaneously happening in NYC and Boston respectively, FOMO is in full swing.  In-between spending time with colleagues and helping Fabio pass out Contexts buttons, so far I have live tweeted (with pics!) at my new twitter account @KatherineKChen, a session on “school discipline” and a session on “theoretical perspectives in economic sociology” from ASA.

Sample tweet of the school discipline session, featuring discussant Simone Ispa-Landa‘s comments about where education research should go.

Sample tweet of an economic sociology session summarizes a finding from an analysis of consumer complaints, conducted by Fred Wherry, Parijat Chakrabarti, Isabel Jijon, and Kathleen Donnelly: student debt inflicts “relational damage” on student’s relations with family and employers.  epopp’s tweets and take of the same session starts here.

You can find other tweets about ASA using #asa2019 or #asa19 and AOM using #aom2019.

Written by katherinechen

August 13, 2019 at 10:24 am

book spotlight: beyond technonationalism by kathryn ibata-arens

At SASE 2019 in the New School, NYC, I served as a critic on an author-meets-critic session for Vincent de Paul Professor of Political Science Kathryn Ibata-Arens‘s latest book, Beyond Technonationalism: Biomedical Innovation and Entrepreneurship in Asia.  

Beyondtechnonationalismcover

Here, I’ll share my critic’s comments in the hopes that you will consider reading or assigning this book and perhaps bringing the author, an organizations researcher and Asia studies specialist at DePaul, in for an invigorating talk!

“Ibata-Arens’s book demonstrates impressive mastery in its coverage of how 4 countries address a pressing policy question that concerns all nation-states, especially those with shifting markets and labor pools.  With its 4 cases (Japan, China, India, and Singapore),  Beyond Technonationalism: Biomedical Innovation and Entrepreneurship in Asia covers impressive scope in explicating the organizational dimensions and national governmental policies that promote – or inhibit – innovations and entrepreneurship in markets.

The book deftly compares cases with rich contextual details about nation-states’ polices and examples of ventures that have thrived under these policies.  Throughout, the book offers cautionary stories details how innovation policies may be undercut by concurrent forces.  Corruption, in particular, can suppress innovation. Espionage also makes an appearance, with China copying’s Japan’s JR rail-line specs, but according to an anonymous Japanese official source, is considered in ill taste to openly mention in polite company. Openness to immigration and migration policies also impact national capacity to build tacit knowledge needed for entrepreneurial ventures.  Finally, as many of us in the academy are intimately familiar, demonstrating bureaucratic accountability can consume time and resources otherwise spent on productive research activities.

As always, with projects of this breadth, choices must made in what to amplify and highlight in the analysis.  Perhaps because I am a sociologist, what could be developed more – perhaps for another related project – are highlighting the consequences of what happens when nation-states and organizations permit or feed relational inequality mechanisms at the interpersonal, intra-organizational, interorganizational, and transnational levels.  When we allow companies and other organizations to, for example, amplify gender inequalities through practices that favor advantaged groups over other groups, what’s diminished, even for the advantaged groups?

Such points appear throughout the book, as sort of bon mots of surprise, described inequality most explicitly with India’s efforts to rectify its stratifying caste system with quotas and Singapore’s efforts to promote meritocracy based on talent.  The book also alludes to inequality more subtly with references to Japan’s insularity, particularly regarding immigration and migration. To a less obvious degree, inequality mechanisms are apparent in China’s reliance upon guanxi networks, which favors those who are well-connected. Here, we can see the impact of not channeling talent, whether talent is lost to outright exploitation of labor or social closure efforts that advantage some at the expense of others.

But ultimately individuals, organizations, and nations may not particularly care about how they waste individual and collective human potential.  At best, they may signal muted attention to these issues via symbolic statements; at worst, in the pursuit of multiple, competing interests such as consolidating power and resources for a few, they may enshrine and even celebrate practices that deny basic dignities to whole swathes of our communities.

Another area that warrants more highlighting are various nations’ interdependence, transnationally, with various organizations.  These include higher education organizations in the US and Europe that train students and encourage research/entrepreneurial start-ups/partnerships.  Also, nations are also dependent upon receiving countries’ policies on immigration.  This is especially apparent now with the election of publicly elected officials who promote divisions based on national origin and other categorical distinctions, dampening the types and numbers of migrants who can train in the US and elsewhere.

Finally, I wonder what else could be discerned by looking into the state, at a more granular level, as a field of departments and policies that are mostly decoupled and at odds. Particularly in China, we can see regional vs. centralized government struggles.”

During the author-meets-critics session, Ibata-Arens described how nation-states are increasingly concerned about the implications of elected officials upon immigration policy and by extension, transnational relationships necessary to innovation that could be severed if immigration policies become more restrictive.

Several other experts have weighed in on the book’s merits:

Kathryn Ibata-Arens, who has excelled in her work on the development of technology in Japan, has here extended her research to consider the development of techno-nationalism in other Asian countries as well: China, Singapore, Japan, and India. She finds that these countries now pursue techno-nationalism by linking up with international developments to keep up with the latest technology in the United States and elsewhere. The book is a creative and original analysis of the changing nature of techno-nationalism.”
—Ezra F. Vogel, Harvard University
“Ibata-Arens examines how tacit knowledge enables technology development and how business, academic, and kinship networks foster knowledge creation and transfer. The empirically rich cases treat “networked technonationalist” biotech strategies with Japanese, Chinese, Indian, and Singaporean characteristics. Essential reading for industry analysts of global bio-pharma and political economists seeking an alternative to tropes of economic liberalism and statist mercantilism.”
—Kenneth A. Oye, Professor of Political Science and Data, Systems, and Society, Massachusetts Institute of Technology
“In Beyond Technonationalism, Ibata-Arens encourages us to look beyond the Asian developmental state model, noting how the model is increasingly unsuited for first-order innovation in the biomedical sector. She situates state policies and strategies in the technonationalist framework and argues that while all economies are technonationalist to some degree, in China, India, Singapore and Japan, the processes by which the innovation-driven state has emerged differ in important ways. Beyond Technonationalism is comparative analysis at its best. That it examines some of the world’s most important economies makes it a timely and important read.”
—Joseph Wong, Ralph and Roz Halbert Professor of Innovation Munk School of Global Affairs, University of Toronto
Kathryn Ibata-Arens masterfully weaves a comparative story of how ambitious states in Asia are promoting their bio-tech industry by cleverly linking domestic efforts with global forces. Empirically rich and analytically insightful, she reveals by creatively eschewing liberalism and selectively using nationalism, states are both promoting entrepreneurship and innovation in their bio-medical industry and meeting social, health, and economic challenges as well.”
—Anthony P. D’Costa, Eminent Scholar in Global Studies and Professor of Economics, University of Alabama, Huntsville
For book excerpts, download a PDF here.  Follow the author’s twitter feed here.

book spotlight: freedom from work by daniel fridman

Fridmanbookcover

Daniel Fridman’s Freedom from Work is an ethnographic account of people trying to create economic mobility in Argentina and the United States. The core of the book is a study of people using various “self-help”strategies to improve their economic position. This may include reading self-help books, forming entrepreneur clubs, and, interestingly, playing board games that teach skills that one needs to run a business.

Theoretically, the book is interesting because it is a contribution to a genre that one might call “studies of the self under capitalism.” The phrase comes from Foucault, but it is really a sort of Bourdieusian style habitus study. The idea is that people have a specific set of attitudes and beliefs about the nature of success and mobility. The interesting thing about Freedom from Work is the way these ideas are shaped and reshaped through these self-help activities. Normally, you’d think these activities are uninteresting and frivolous, but they reveal how people understand the nature of success and what individuals can do to affect that.

So what do we learn from the ethnography? A few things. First, from a very basic point of view, is that extracting economic success from a market system requires very specific skills that many (most?) most people do not have. Perhaps a lesson for students of entrepreneurship is that economic actors must be socialized in a specific way. Second, we learn how market logics are applied to individual behavior, which Fridman calls the construction of a neoliberal self.  I normally hate the word “neoliberal,” but I’ll let it slide here. Understanding how market-oriented calculability is applied to daily life and how it transforms the self is a worthwhile topic.

I found the book to be well written and engaging. I think economic sociologists, entrepreneurship scholars, and cultural sociologists will like this book. I also think it is interesting  to those in a Foucauldian tradition, who have a taste for very late Foucault. Recommended!

50+ chapters of grad skool advice goodness: Grad Skool Rulz ($4.44 – cheap!!!!)/Theory for the Working Sociologist (discount code: ROJAS – 30% off!!)/From Black Power/Party in the Street / Read Contexts Magazine– It’s Awesome! 

Written by fabiorojas

April 11, 2018 at 12:55 pm

(1) new sase submission deadline and (2) new grant available for researchers studying alternatives to hierarchical organization

Happy 2018, everyone!  Two announcements:

  1. The SASE conference submission deadline has been extended to Jan. 29, 2018.  Please consider submitting to the “alternatives to capitalism” network that I’m co-organizing.
  2. A new fellowship of interest to those studying worker cooperatives and similar organizational forms is now available via Rutgers University:

The Bill & Connie Nobles Fellowship
For the study of alternatives to hierarchy in organizing the activities of corporations

This Fellowship supports research on alternatives to hierarchical organization in the corporation. Scholars will address whether management has any fundamental reason to control employees. Is there a practical alternative to far-reaching hierarchical control by management that can eliminate the root cause of some problems that hierarchical organizations face? The negative impacts of such control on human development and behavior became more apparent as managers sought to maximize the contributions of knowledge workers and encourage employees to think economically. The study may involve innovations in theory or practice, or case studies. Approaches for including employees in sharing equity and profits should be addressed in the proposal.

Doctoral candidates and pre/post tenure scholars in the social sciences and humanities may apply for the $25,000 stipend that can be used for research/travel expenses.

Submit an email application with a 1500 word proposal and a vita by February 28, 2018 with decisions by March 15. Please have three letters of reference sent separately to: fellowship_program@smlr.rutgers.edu

Info at: https://smlr.rutgers.edu/content/bill-nobles-fellowship and https://smlr.rutgers.edu/content/fellowships-professorships for a listing of all current and past Fellows or email the Director of the program at bschrief    [at]  smlr   [dot]  rutgers   [dot]  edu

Written by katherinechen

January 8, 2018 at 7:32 pm

cfp ‘Alternatives to Capitalism’ SASE Research Network Conference, due Jan. 29, 2018 (note extended deadline!)

As you may remember the cfp I posted almost a year ago, Joyce Rothschild and I co-organized a mini-conference “Seeking a More Just and Egalitarian Economy: Realizing the Future via Co-operatives, Communes, and Other Collectives” at the Society for the Advancement of Socio-Economics (SASE) 2017 annual meeting in Lyon, France.  We had a great turn-out from researchers who came from around the world to attend and present at our sessions.

We have now joined up with Lara Monticelli and Torsten Geelan to form the ‘Alternatives to Capitalism’ research network at SASE.  The June 23-25, 2018 SASE conference meets in Kyoto, Japan!

Please consider submitting a paper, session, or “author meets critic” session to our research network.  Or, have a look at the other SASE research networks and mini-conferences, including a mini-conference on organizational inequality.

[Update: For tips on how to submit, click  on this guide SASE-Submitting-a-Proposal.]

You can download our research network’s cfp here: RNAlternativestoCapitalismCfPSASE2018.  Or, you can just read the below:

‘Alternatives to Capitalism’
SASE Research Network Conference
Doshisa University
Kyoto (Japan), 23-25 June 2018

CALL FOR PAPERS: SOCIETY FOR THE ADVANCEMENT OF SOCIO-ECONOMICS (SASE) ANNUAL CONFERENCE
JUNE 23-25, 2018, DOSHISA UNIVERSITY, KYOTO (JAPAN)
ALTERNATIVES TO CAPITALISM RESEARCH NETWORK:

https://sase.org/about/networks/
DEADLINE FOR ABSTRACT SUBMISSIONS AND SESSION PROPOSALS (MAX 500 WORDS): JANUARY 29, 2018 (updated deadline!)
**************

The theoretical foundations of this new research network, that will run for five years from 2018 to 2022 at the annual conference of the Society for the Advancement of Socio-Economics (SASE), lie in the contemporary debate about the future of contemporary capitalism and the urgent need to start prefiguring alternatives that can help tackle the multiple crises we currently face: high and rising inequality of income and power, eroding democracy, irreversible environmental destruction and human-induced climatic change, increasing racism(s), right-wing extremism(s) and various forms of discrimination, and new forms of worker exploitation within the gig economy.
The goal of this new research network is to advance the international, comparative and interdisciplinary study of theories, practices, social movements, communities and other organizations that are advocating, experimenting with and constructing alternatives to contemporary capitalism.
More specifically, the research network has three goals:
1) To bridge the disparate interpretative frameworks that exist by engaging in a theoretical systematization of the literature;
2) To map existing alternatives embedded within various socio-economic, political and geographic contexts;
3) To encourage the use of innovative research methods that can provide new insights and reach broader audiences.

Topics of interest include, but are not limited to: Prefigurative social movements and real utopias; Political and ethical consumerism; Alternative futures; Digital capitalism, technology and the future of work; Independent trade unions and political parties; Eco-villages, autonomous and sustainable communities; Community and practice-based initiatives; Radical lifestyles; Cooperatives (worker/producer/consumer) and cooperativism; Direct democracy and municipalism; The commons and commoning practices; Alternative forms of organisation and governance; Transformative social innovation; Alternative media, and Other forms of alternative social reproduction.
*****************

We welcome paper presentations, sessions (min. 3 participants) and book review symposia (“authors meet critics” sessions) which can be submitted through the SASE website by choosing the Research Network: I (‘Alternatives to Capitalism’).
To submit your abstracts or session proposals, please visit the website: https://sase.org/
DEADLINE FOR SUBMISSIONS: JANUARY 29, 2018 (updated deadline)

Please note that several Early-career Scholar Awards are available each year to cover the costs of travel, accommodation and membership fees. For information on how to apply, please visit the website at: https://sase.org/events/conference-submission-and-award-guidelines/

You are very welcome to contact the research network chairs below to discuss paper and panel submissions or any questions you may have:
Dr. Lara Monticelli (lara.monticelli      [  at]      sns.it);
Dr. Torsten Geelan (tkg22   [at]  cam.ac.uk);
Professor Katherine Chen (kchen   [at]   ccny.cuny.edu).
We look forward to meeting you in Kyoto in June 2018!

Written by katherinechen

December 15, 2017 at 5:35 pm