oicei~ zstitzrtiorzalisrrzw, hich understands the
development of institutions as rule systems that rational individuals agree to
in order to maximize personal benefits to be derived from collective action
(Rutherford, 1996). This approach largely draws upon methodological individualism
in the social sciences, and upon neo-classical economics in particular,
in developing a 'new economics of organization', that emphasizes the
importance of property rights, rent-seeking behaviour, and transaction costs
to the development of institutions (\Villiamson, 1985; Hall and Taylor, 1996).
At the 'strong' end, the French 'Regulationist School' of political economists
(Aglietta, 1987, 1998; Boyer, 1987,1988,1990; Lipietz, 1987) have developed
a model of capitalist economic dynamics that links Marxist, institutionalist
and macro-historical methodologies. Coriat and Dosi (2002, p. 102) have
observed that what the 'Regulationists' refer to as a regirlle of accunzr~latiorza,
term derived from the Marxist theory of capitalist accumulation grounded in
historical time, is based upon six sets of institutional arrangements:
1. the wage-labour nexus (types of empl,oyment, systems of governance of
industrial conflict, union representation, wage formation and so on);
2. forms of competition in product and service markets;
3. institutions governing financial markets, including share and credit
markets;
4. norms of consumption;
5. forms of state intervention in the economy (economic management policies,
regulation of conflict, industry development, taxation, welfare, health
and education, public good provision and so on);
6. organization of the international system of exchange.
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46 Understanding Global Media
Coriat and Dosi identify regulation theories as a form of 'strong institutionalism'
whereby institutions shape the cognitive processes and identities of
individuals, where the identification of self-interest is linked to institutional
maintenance, and where institutions are the 'carriers of history', whose decisions
generate a path dependency in social development over time (Coriat and
Dosi, 2002, p. 100).
It was observed in Chapter 1 that the relevance of institutional analysis to
the study of global media arises from the centrality of the corporate fori~z to
media organizations in the 20th and 21st centuries. Five factors presented
themselves as being of significance in promoting the increasing enmeshment
of media production and distribution within the corporate institutional form:
1. the distinctive legal form of the corporation;
2. the question of who controls the corporation;
3. the growing complexity of corporate institutions and the move towards
multidivisional organizational forms;
4. the role of contracts as a means of managing risk and co-ordinating diverse
activities;
5. the role of bureaucracy as a means of managing creativity, and challenges
to this within the context of creative work.
It was also observed that the corporate form of institutional organization
generates particular questions related to policy and governance, and it cannot
be assumed that the decisions made by the political institutions of the state
simply reflect the structural alignment of forces that exist independently of it.
Historical institzttio~zalists such as Skocpol (198
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