Economic Sociology II

Just another note about the Postrel article...

I need to study up on Brian Uzzi

Uzzi finds that businesses do best when they find a ''bliss point," combining just the right mix of arm's-length and ''embedded" relationships. Strictly economic relations bring in new information, while more personal connections are better at solving specific problems. In looking for bank loans, small businesses find out about interest rates and new loan structures by shopping the market, but they get customized deals from the aptly named ''relationship managers" at their existing banks.

''What my work showed was that really neither approach, in its purest form really works best," says Uzzi ''If people are purely rational and atomistic, they underproduce. If people care entirely about community and ignore what market signals are giving out, they don't do well. Those that do best are those that find a balance."

This raises a question I've thought of a couple of times. What does effect "customer engagement" have on the economy? Its not just "branding" and finding ways to price discriminately--it has to do with creating value. Having information about what your customer want/need increases the value of your market transactions with them, not just for you, but for them as well.

I also need to read Postrel's book: "The Substance of Style: How the Rise of Aesthetic Value Is Remaking Commerce, Culture, and Consciousness"