Creating The Theory of Economic Interaction and Coordination: The Main Issues

Abstract

The paper examines the most well-known scientific approaches to interaction between economic agents. The author gives a definition of the term “coordination” and develops criteria for a basic taxonomy of methods of economic interaction. The above-mentioned criteria enable researchers to describe ideal (pure) methods of coordination. These are (a) routines (based on fixed patterns of behaviour), (b) norms (based on formal and informal rules and standards), (c) pricing (based on cost-benefit analysis), (d) roles (based on mutual expectations in a society), (e) administration (based on orders, tasks and instructions), (f) consensus (based on mutual agreement), (g) surveillance (decision-making based on information about other agents). The author explains that interaction between economic agents always rests on a combination of several coordination methods, whereas these combinations vary from one field of interaction to another. The last part of the paper describes the author’s own vision of leading and auxiliary coordination methods that prevail in various fields of interaction under different regulation systems.