An Essay on Framing and Overflowing: Economic Externalities Revisited by Sociology

Abstract

When reviewing the conditions required for the existence of markets, no concept is more useful or appropriate than that of ‘externality’. The concept of externality is effectively central both to economies and to economics. So an attempt to clarify its significance and scope represents a suitable point of departure for renewed efforts at co-operation between sociologists and economists. Rather than highlighting the limitations and weaknesses of the concept with a view to attacking the limitations and weaknesses of economic theory, I intend to show just how useful it is as a tool for understanding the dynamics of markets, drawing upon sociology as an additional resource. I shall approach this task from the perspective of the sociologist of science and techniques. This will allow me not only to highlight the role of investment—in particular technological—in the emergence of economic agents that are capable of strategies and calculation; it will also serve as an incentive to take the ‘performative ’ role of the sciences—and hence also of economics and sociology—more seriously. I shall start by putting my economist’s hat on in order briefly to remind my fellow sociologists of the various ways in which the concept of externality can be defined, together with its practical and theoretical implications. This will lead on to a discussion of the various mechanisms upon which the concept is predicated. I shall then touch first upon what I shall here refer to as ‘framing/overflowing ’ and upon the various issues associated with the identification, measuring and containment of such overflows. I shall subsequently focus my attention on the role played by the technosciences in the proliferation of overflows, highlighting the active role of the social sciences—alongside the natural sciences—in the identification and management of externalities. Finally, I shall draw one of the most important conclusions suggested by this exercise: that the market is not simply expanding, but rather continuously emerging and reemerging, and that its consolidation requires constant and substantial investments. 1. Definition(s) and issues