Upload
anca-saghin
View
216
Download
0
Embed Size (px)
Citation preview
8/10/2019 1.2. Max Weber_The Economic Action
1/12
Socio-
fact
in
here
or
and
of
of
in
It
"cor-
in
simi-
the
und
im
C H APT ER
II
SOCIOLOGICAL CATEGORIES
OF
ECONOMIC ACTION
I
T
PrefatoryNote
What follows
is not intended in
any sense
o be
"eonomic
theory."
Rather,
t consists nly in an attempt to define certain conceptswhich
are
frequently used and to analyze
certain of the
simplest
sociological
reladonshipsn the
economic
phere.As in the first chapter, he
procedure
here has
been determined entirely
by considerationsof convenience.
t
has
provedpossible
ntirely o avoid he controversial onceptof
"value."'
The usagehere, n the relevant
sectionson
the
division of
labor
[see
sec.
r
5ff.],
has
deviated rom the terminologyof Karl
Bticher
only
so
far as
seemednecessary or the
purposesof
the
present
undertaking. For the
present
all
questions
f
dynamic
process
ill be
left
out of account.
r. TheConcept
of Economic ction
Action will bb said to be
"economically
oriented" so far as, according
to its
subjectivemeaning, t is
concernedwith the
satisfaction f a
desire
for
"utilities"
(Nunleistungen).
"Economic
action"
(Wirtschaften)
is
a
peaceful use of the actor's control
over resources,
which
is
rationally
oriented,
by deliberate
planning,
to
economicends.
An
"economy''
(Wirt-
schaft) is autocephalous
conomicaction. An "economic
establishment"
(Wirtschaftbetrieb)
is an
organized system of continuous
economic
action.
r. It was pointed out above ch. I, sec. r:a) that economic c-
tion assuchneed
not be
social
action.
t6il
8/10/2019 1.2. Max Weber_The Economic Action
2/12
64 socror.ocrcAr,
cATEcoRTES
F
EcoNoMrc AcrroN
I
Ch. II
z.
The
definition of economic
action must be as
general as possible
and
must bring
out the fact that all
"economic"
processes
nd
objectsare
characterized
s
such entirely by the
meaning
they have
for human ac-
tion in such roles as ends, means, obstacles, nd by-products. t is not,
hor'vever,
ermissible
o
express his by saving,as s sometimes
one,
that
economic
action is
a
"psychic"
phenomenon. The
production
of
goods,
prices,or even the
"subjective
viluation"
of
goods,
f th"y are empirical
processes,re far from
being merely
psychic phenomena.
But
underlying
this misleading
phrase
s
a correct nsight. It is a fact that these
phenom-
ena have a
peculiar
type of subjectivemeaning.
This
alone defines
he
unitl' ef the corresponding
rocesses,
nd this alone makes
hem accessi
ble to
subjective
nterpretation.
The definition of
"economic
action" must, furthermore, be formu-
lated in
such a way as
to
include
the operationof a modern business n-
terprise un for
profit.
Hence the definition cannot be based
directly
on
"consumption
needs"
and the
"satisfaction"
of these needs, but must,
rather,
start out on the one hand from the fact that there is a
desire
de-
mand)
for utilities
(which
is true even in the case of orientation
to
purely
monetarv
gains),
and on the other
hand from the fact that pro-
ttision s
being made
o furnish the supplies
o meet this demand
(which
is true
even in the most
primitive
economy merelv
"satisfying
needs,"
and
regardless
f
how
primitive
and frozen
in tradition the methods
of
this
provisionare).
3.
As
distinguished rom
"economic
action"
as such, the term
"eco-
nomically
oriented action" will be applied to
two
types:
(a)
everv action
which, tirough
primarily oriented
to other e.rds,'tikes account,
in the
pursuit
of them,
of economic
considerations;hat is, of the consciously
recognized
necessity
or economic
prudence.
Or
(b)
that which, though
primarily
oriented to economic ends, makes use of
physical
force
as a
means. t thus includes
all orimarilv non-economicaction
and all non-
peaceful action which is infuenced bv economic considerations . Eco-
nomic action"
thus
is
a
conscious, rintary orientation to economic
con-
siderations. t must be conscious,
or what matters
is not the objective
necessityof
making economic
provision,
but
the
belief that is is neces-
sary. Robert
Liefmann
has rightlv laid emphasison the
subjective un-
derstandableorientation
of
action which makes
t economic action. He
is not, however,
correct n
attributing
the contrary view
to all other au-
thors.2
4.
Every type of
action,
including the use of
violence, may be eco-
nomically
oriented.
This
is true, for instance,of war-like action, such
as
marauding expeditionsand trade wars.
Franz
Oppenheimer,
n
particu-
lar, has rightly
distinguished
economic" means rom
"political"
means.s
It
is
essential o
distinguish
the latter from economic
action. The use
of
force s unquestionably ery strongly opposed o the spirit of economicac-
cluisition n the
usual sense.
Hence the term
"economic
action" will
not
be applied to the direct appropriation
of
goods
by force and the direct
coercion
of the other
partv
by threats of
force. It
goes
without saying,
at
r l
the
same
ime,
th
is
one
of the
mo
sion
for the
mea
the caseof arma
just
as
much
eco
Every
rationa
respect
o
provis
polit ical
action
o
it is not
necessa
economic
order
u
trol
of
resources
that
is,
if its
for
force.
But
the fa
tion
by force,
do
force.
How
ent i re l
defined,
s only
comes
evident
fr
only
in terms
of
of
force.
f any
practical
purpos
however,
orlent
could
be
procure
5.
Not
even
will
be called
"r
anv
sense;
n
pa
that
of
"technol
employed
as opp
the
last analys
which
is consc
reflection f the
in
scientific
kno
nique"
is
thus
v
seen
n the
tota
may
be
signif ic
"meaning" of
th
its
technical
un
order
to
accom
techniques
of e
asceticism,
f th
ercising
olit ica
love,
of making
of
arriving
at
le
tion in degreeo
ways
means
ha
rrxeans
o
an en
nique
may
be
t
8/10/2019 1.2. Max Weber_The Economic Action
3/12
r l
The
Concept
of
Econornic
Action
the same
ime, that
exchange is not the only
economic means, though it
is
one of
the most important.
Furthermore,
the formally
peaceful provi-
sion for the
means
and the success f a
proiected
exerciseof force, as
in
the caseof
armament
production
and eionomic orqanization or
war,
is
just
as
much economic
action as any other.
Every rational
courseof
political
action
is
economicallyoriented with
respect
o
provision for the necessarymeans,and it is
always possible
or
political action to
serve he interes t of economicends. Similarly, though
it is not necessarily
rue
of every economicsystem,
certainly
the modern
economic
order under modern
conditions could
not continue if
its con-
trol of
resources
were not upheld by
the
legal compulsion of the sta te;
that is, if its
formally
"legal"
rights were not upheld
by the threat of
force. But the
fact that an
economicsystem
s thus dependent on
protec-
tion by force,
does not mean that it is itself an example of
the
use
of
force.
How entirely
untenable t is to maintain that the economy,however
defined,
is
only' a
means,
by contrast, or instance,
with the state,
be-
comes
evident
from the fact that it is
possible o define
the state
itself
only in termsof the meanswhich it todav monopolizes, amely, the use
of force.
If anything,
the most essentialaspect of economic action
for
practical
purposes
s
the
prudent
choice
behueen
ends.
This
choice is,
however,
oriented
to the scarcity of the means which
are available or
could
be
procured or thesevariousends.
I.
Not every type of action
which
is rational
in
its
choice of means
will be called "rational
economic
action,"
or even
"economic
action"
in
any sense; n
particular,
the
term
"economy"
will be
distinguished
rom
that of "technology."a
The
"technique"
of an action
refers
to
the
means
employed
as opposed
o the meaning or end to which the action is, in
the last
analysis,
oriented. "Rational"
technique
is a
choice
of
means
which is
consciouslyand
systematicallyoriented to the experience
and
reflection
of the actor,
which consists, t the
highest
level of
rationality,
in scientific knowledge.
What
is concre tely to be treated as a
"techni-
nique" is thus variable,
The ultimate meaning of a concrete act may,
seen n
the total context
of ac tion, be of a
"technical"
order; that is, it
may
be significant
only as a means in
this
broader context. Then the
"meaning"
of
the
concrete.act
viewed
from the larger
context) lies in
its technical
function;
and,
conversely, he means
which are applied
in
order
to accomplish
his
are
its "techniques."
In this sense
here are
techniques
of
every conceivable
ype of action, techniques
of
prayer,
of
asceticism,
f
thought
and
research,
f memorizing, of education,
of ex-
ercising
political
or hierocratic
domination, of administration,of making
love,
of making
war, of musical
performances, f
sculpture and
painting,
of arriving
at legal
decisions.
All
these are capable of the widest vari a-
tion in
degree
of
rationality.
The presenceof a
"technical
question"
al -
ways means
hat
there s somedoubt over the choice of the most
rational
tneans to an end. Among others, the standard of rationality for a tech-
nique
may
be the famous
principle
of
"least
effort," the achievement
of
65
8/10/2019 1.2. Max Weber_The Economic Action
4/12
8/10/2019 1.2. Max Weber_The Economic Action
5/12
I
r l
The
Concept of
EconomicAction
is
primarily
oriented to the
problem
of
choosing the
end
to which a
thing
shall be
applied; technology,
o the
problem, given
the end, of
choosing he
appropriatenxeans.
or
purposes
of the theoretical
(not,
of
course, he
practical)
definition of technical rationality it is
wholly in-
different whether the product of a technicalprocess s in any senseuse-
ful. In the
present erminology
we can conceiveof
a
rational technique
for achieving
ends
which no one
desires. t would, for
instance,be
possi-
ble,
as a kind
of technical
amusement, o apply all the most modern
methods
to the
production
of atmosphericali.-
And
no one could
take
the slightestexciption
to the
purely
technical
rationality
of
the action.
Economicall y, on
the other hand,
the
procedure
would under
normal
circumstances
e clearly irrational
be.ause there would
be no demand
for the
product.
(On
all this,
comparev. Gottl-Ottlilienfeld,
op. cit.)
The fact
that what is called
the technologicaldevelopment
of mod-
em
times
has been
so
largely
oriented
economically o
profit-making
is
one of
the fundamen tal facts
of the
history
of technologv.But however
fundamental it has
been, this economic orientation hii by no means
stood alone
in shaping
the development of technology. In addition,
a
part has beenplayed by the gamesand cogitationsof impractical deolo-
gists,
a
part by other-worldly nterests
and all sorts
of fantasies,
part
by
preoccupationwith
artistic
problems,
and by various other non-economic
motives.
None the less, he main ernphasisat all times, and
especially
the
present,
has lain
in the economic determination
of technological
development.Had not rational
calculation
ormed
the basisof economic
activitv. had
there not been certain verv oarticu lar conditions in its
economicbackground, rational
technology cbuld never
have
come
into
existence.
The fact
that the aspects f economicorientation which distinquish
it from
technology "r" ,,ot
explicit lv brought
nto
the init ial definit ion,
is
a
consequence
f the sociological tarting
point.
From a sociological
point
of view,
the weighing of alternativeends n relation to each other
and to costs s a consequence f "continuity." This is true at least so far
as costs mean
something other than altogether
giving
favor of more
urgent ones.
An
economic theory, on
would do well to emphasize
his
criterion
rom the start.
end
in
hand,
6. It is
essential'to nclude the criterion of
power
of control and dis-
posal
(Verftgungsgewab)5
in the
sociological concept of
economic ac-
tion,
if
for no other reason han that
at
least
a
modern
market
economy
(Erwerbrnirtschaft)
essentially consists in a complete network of
ex-
change
contracts, hat is, in
deliberate
planned
acquisitionsof powers
of
control and
disposal.This, in such an economy, s the
principal
source
of the relation
of economicaction to the law. But any other type of or-
ganization of economic activities
would
involve
some
kind of
de
facto
distribution of
powers
of
control
and disposal,
however
different
its
un-
derlying
principles
might be from those
of the
modern
private
enterprise
economy with its legal
protection
of such
powers
held
by autonomous
and autocephalous conomic
units. Either the central authority, as n the
caseof socialism,or the subsidiary
parts,
as in
anarchism,must
be
able
67
uP one
the other
8/10/2019 1.2. Max Weber_The Economic Action
6/12
6 8
socror,ocrcAr,
cATEGoRTESF EcoNoMrc ACTToN
I
Cl4. II
to count
on
having
some
kind
of control over the necessaryservices of
labor and
of the means
of
production.
It is
possible
o obscure his
fact
by verbal
devices, ut it cainot be interpreted
out of existence.For
pur-
poses f definition it is a matter of indifference n what way this control
is
guaranteed;whether by
convention or by law, or whether
it
does not
even enjoy the
protection of any external sanctionsat all, but its security
rests only
on actual expectations
n terms of cus tom or self-interest.
These
possibilitiesmust be taken into
account,
however essential egal
compulsionmay
be for the modern economicorder. The
indispensability
of
powers
of control
for the conceDt of social
action in its economic
aspicts
thus does not imply
that
legal
order
is
part
of that concept
by
definition, however
important it may be held to be on empirical
grounds.
7.
The
concept
of
powers
of control and disposalwill
here be taken
to
include
the
possibility
of control over
the ac tor's own labor
power,
whether
this is in some way enforced or merely exists
n fact. That
this
is
not to be
taken for
granted
is shown by
its absence n the case
of
slaves.
B. It is necessary
or
the
purposes
of a sociological heorv of
eco-
nomic
action
to
introduce
the concept
of
"goods"
at an
early stage,as
is
done
in
sec.
2.
For this theory is concernedwith
a type of action which
is
given
its
specific
nteaning by
the
resuhs
of
the actors' deliberations,
which themselves an be isolatedonlv in theorv fbut
cannot be observed
empiricallyl. Economic
heory, the tteoretic^l
iniightr of
which
provide
the basis or the
sociologyof economic
action, might
(perhaps)
be able
to
proceed
differently; the latter may find it necessarv
o create
ts own
theoretical onstructs.
z. TlceConcept f
U
tility
By
"utilities"
(Nutzleistungen)
will alwaysbe
meant the specific
and
concrete, eal or imagined, advantages
Ckancen)
of opportunities
or
present
or future useas hey are estimated
nd
madean objectof specific
provision
bv one or
more
economically
ctinq
ndividuals.
The action
of
ihese
.,dividuals s
oriented
o the estimated-importance
f
such utilities
as means or the endsof their economic
action.
Utilities
may
be the services
f non-human
or inanimate objects
or
of
human
beings.
Non-human
objects
which
are the sources
f
potential
utilities of
whatever
sort will be
called
"goods."Utilities derived rom a
human
source,so far as this
sourceconsists
n
active
conduct, will be
called
"services" Leistungen).
Social
elationships vhich
are
valued
as
a potentialsource f presentor future disposal ver utilities are, however,
also
objectsof economic
provision.
The
opportunities
of
economic
ad-
vantage,
which
are
made available
by
custom,
by
the
constellationof
z l
interest, or by
nomic
unit, wil l
On the fo
und V
erhaltn
( Innsbruck
8
r.
The
ca
of the enviro
nomic
purpos
cern. Such th
on
the
part
o
merousother
importance
a
stance,of co
cepts
o
try
to
This
choiceo
convenience
z. As Boh
imprecise f a
without disti
were
then eq
util i ty,
it is no
but the
speci
uses; or
insta
thing of the
such
potent i
exchangc
n
erty." Instea
potential pow
s e r v i c e s , p r
nomic advan
not ikely o b
3.
The fa
permission,
ience.
But it
and services
ical ly igni f ic
On the
co
3.
Mode
Economic
o
rationality.
Eve
of action, the
For the
most
p
ger ia l "
act ion,
8/10/2019 1.2. Max Weber_The Economic Action
7/12
zl
The
Concept of
l,Itility
6
9
interest,
or
by a conventional
or
legal
order
for the
purposes
of an
eco-
nomic
unit, will
be called
"economic
advantages."
On the
following
comments, compare
E.
von
Bohm-Bawerk,
Rechte
un
d V erh iltnis
se
v m Standp
unkt dir
v olksw rtschaf liehen
G iterlehr e
( Innsbruck BBr) .
-
r.
The categories
of
goods
and
services
do
not
exhaust those aspects
of the
environment
which
may be important
to an individual for eco-
nomic
purposes and which
may hence be an object
of economic
con-
cern. Such things
as "good
will,"
or the tolerance of economic
measures
on
the
part
of individuals
in
a
position
to interfere
with them, and nu-
merous other
forms of
behavior, may have the
same kind of economic
importance
and
may be the object
bf
economic
provision
and, for in-
stance,
of contracts.
It
would, however, result in
a
confusion
of con-
cepts
to try
to bring
such things
under either of these two categories.
This choice
of conc"eptss thus"entirely
determined by consideration
of
convenience.
z. As
B
8/10/2019 1.2. Max Weber_The Economic Action
8/12
7
o
SOCTOLOGTCAL ATEGORTES
OF
ECONOMTC ACTTON
lch.
II
sec.
r
5.)
The
development of rational economic action from
the instinc-
tively
reactive
search for
food or traditional acceptance of i nherited
techniques
and
customary
social
relationships
has
been
to
a large extent
determined by non-economic events
and actions,
including
those outside
everyday routine,6
and also by the
pressure
of necessity
in
casesof in-
creasingabsolute
or relative imitations
on
subsistence.
r.
Naturally there
cannot
in
principle
be
any scientific standard or
any such concept
as that
of an
"original
economic state." It would be
possible
o agree
arbitrarily to
take the
economic
state
on
a
given
tech-
nological level,
as,
for instance, hat charactei zed by
the
lorvest devel-
opment
of tools and equipment known
to us, and to treat it and analvze
if
as the most
primitive.
But there is no
scientific
ustification
for con-
cluding
from
observations
f
living
primitive peoples
on
a
low
techno-
logical level
that the
economic organization of all
peoples
of the
past
with similar
technological
standing
has been
the same
as,
for
instance,
that of the Vedda or of certain tribes of the Amazon region. For, from
a
purelv economic
oint of
view,
this level of technologv
as been
ust
as compatible
with large-scaleorganization of labor as with extreme
dispersal n
small
groups
(see
below,
sec.
16). It is impossible o
infer
from the economic
aspects f the natural environment alone, u'hich
of
thesewould be
more ,,ea.lv approached. arious non-economicactors,
for instance,
military,
could
make
a substantial ifference.
z.
War and
migration are not in themselveseconomic
processes,
though
particularly
in
early
times
thev
have been largely oriented to
economic
considerations. t
all times, however, ndeed up to the
pres-
ent, they have
often been
responsible
or radica l changes n the eco-
nomic system.
n cases
where, through such factors as climatic
changes,
inroads
of sand,
or deforestation, here
has
been an absolutedecrease
n
the
means of
subsistence, uman
groups
have adapted themselves
n
widell' differing ways, depending on the structure of interestsand on
the manner in
which non-economic
actors
have
played
a role. The tvp-
ical reactions,
however,
have been a fa ll
in
the standard of
living and
an absolute
decrease
n
population. Similarly,
in cases f
relative impov-
erishment
n
meansof subsistence,
s determined
b,v a
given
standard
of
living
and of the
distribution of
chancesof acquisition, here
have also
been
wide variations,
But on the
whole,
this
type
of situation has, more
frequently
than the
other, been met by
the
increasing ationalization of
economic
activities.Even in
this
case,
owever, t is not
possible
o make
general
statements.
So far as the "statistical" nformation
can be
relied
upon,
there was
a tremendous ncrease
of population
in
China after
the
beginning
of the eighteenth century,
but it had exactlv the opposite
effect
from the similar
phenomenon
of about
the
same
ime in
Europe.
It is. however,possible o s ay at leas t somethingabout the r...or,. io ,
this
(see
below,
sec. rr.).
The chronic scarcity
of the means of subsist-
ence
n
the Arabian
deserthas only
at certain times resulted n
a
change
in
the
economic
and
political
structure, and these
chanqes
have
been
3l
M
most
Promine
played
a
part.
3 .
A
h i g h
terized the lab
great
increase
talisticdirectio
alization of
pu
ertheless,
his t
in
the
Western
modern
ype of
.
4.
I
ypxci l
The followi
(r)
The
sy
ities,
on the
con
count.
These
a
(z)
The
sy
uses
n the orde
the
pr inciple
[
These
wo c
developed
n tim
of
the allocatio
(g)
The
sy
tion of suchutil
controlled
by th
action
will take
urgencyof
his
d
necessaryxpen
requisite
abor s
requisite
goods
alternative
rod
sense, hich
inc
(+)
The sy
with
the
presen
of
control and d
not be shared
w
themselves re
are
n
such
con
a way as
o end
The releva
Present
osses
8/10/2019 1.2. Max Weber_The Economic Action
9/12
I I
extent
outside
of in-
for
be
ech-
devel-
con-
past
from
just
of
to
pres-
eco-
n
n
on
and
of
also
more
of
for
3
]
Mod.es of Economic Orientation of Action
7
|
most
prominent when
non-economic
(religious)
developments
have
played a
part.
3.
A high
degree of
traditionalism in habits
of
life,
such
as charac-
terized
the laboring classes n early modem times, has not
prevented
a
great
increase n
the
rationalization
of economic enterprise under
capi-
talistic
direction.
But it
was also compatible with, for
instance, the ration-
alization of public finances in Egypt on a state-socialisticmodel. Nev-
ertheless, his traditionalistic attitude
had
to be at
least
partly
overcome
in
the
Western
World before the further development
to the specifically
modem type
of
rational capitalistic economy could take
place.
4.
Typical
Measures f
RationalEconornic
ction
The following are typical
measures f ra tional economic
action:
(
r
)
The
systematic
allocation
as between
present
and future
of
util-
ities, on the con trol of
which
the actor
or whatever eason eelsable to
count.
(These
are the essential eatures of saving.)
(z) The systematic llocation f available tilities o variouspotential
uses
n
the order of their estimated elative urgency,
ranked
according to
the
principle of
marginal utility.
These two cases,he most definitely
"static,"
have been
most highly
developedn times
of peace. oday,
or the
most
part,
they take
he
form
of the allocation of monev incomes.
(l)
Th" systematic
pio".rr"-".rt'
through
production
or transporta-
tion
of such utilities for
which all the necessary
means
of
production
are
controlled
by the actor himself. Where action is
rational, this type of
action
will take
place
so far
as,
according o the
actor'sestimate, he
urgency
of
his
demand for the
expected
esult of the action
exceeds he
necessary xpendirure,
which may
consist n
(a)
the irksomeness
f the
requisite abor services, nd (b) the other potential uses o which the
requisite
goods
ould be
put;
including,
that
is, the
utility of the
potential
alternative
products
and their
uses.This is
"production"
n
the broader
sense,which includes
tansportation.
(+)
The iystematicacquisition,
by agreement
Vergesellschaftung)
with the
presentpossessors
r with competing
bidders,
of
assured
owers
of control and
disposal ver utilities. The
powersof
control may
or may
not be shared
with others.
The occasionmay
lie in the
fact that
utilities
themselves
re n the
control of
others,
hat their
means
of
procurement
are
in
such
control, or that
third
personsdesire o
acquire them in
such
a way
as to endanger
he actor's
own supply.
The relevant
rational
association
(Vergesellschaftung)
with the
presentpossessorf a power of contro lor disposalmay consist n (a) the
8/10/2019 1.2. Max Weber_The Economic Action
10/12
7
Z
SOCIOLOGICAL
CATEGORIES
OF
ECONOMIC
ACTION
[ ch .
I I
4l
Ty
land.
It
may
which
is
clo
competition
t
.o-Lined
wit
guaranteed
o
6fte.r,
house
ulation
of fo
common
field
so
on,
have
land
owe
hei
5.
Anyth
of
one
perso
COmpenSatIOn
and
ervices
instance,
go
cannot
be
en
vantages,
cla
Thus-object
For pres
meant
every
of
any
sort
o
it ies
of
any
the
utility
o
same
kind
o
ance
of,
the
of
any
kind
ple today
n
ihe
"worker
will,
for
pre
tween
oan
a
5.
The
c
though
enfo
exchanges
as,
or
insta
It
is
not
un
to
a
high
d
Rational
ex
from
it,
or
the
other's
consumPti
ented
to
pr
for
profit.
In
ated
from
c
stance,
ou
marginal
ut
casionbe s
may
estab
establishment
f
an
organization
with
an
order
o
which
the
procurement
and
use
of utilities
s t]o
b"
oriented,
or
(b)
in
exchange'
n
the
first
case
the purpose
of
the
organization
may
be
to
ration
the procurement'
use'
or
.onffido", i., ord& to limit comPetitionof.procuring
actors'
Then
it
is a
"regulative
organization."
Or,
secondlyl
':
.p"tp3t" Tu{
be
to
set
up
a
unified
auth;iry
for
the
sysrematic
d-lnltt.ntion
of
the
utilit ies
#frl.fl
i'rJ
f.itherto
bJen
s.,bjectio
a dispersed
ontrol.
n
this
case
here
is an
"administrative
rganization."
,,Exchange"
is a co"*p.o-ise
of
interests
n
the
part
of"
he
Parties
n
the
course
of
which
noJd,
o,
other
advantages
re
Passed
s
reciprocal
--p".trution.
The
"i"hu.g"
may
be
traditional
or
conventional'S
nd
h"nl",
especially
n
the
lri",
.u'",
not
economically
ational'.
Or'
sec-
o"afy,
it
i-,'"y
be
economically
ational.both
n
intention
and
in
result.
i;"i;."r"
Jf
a
rationally-
ri",,t"d
exchange
s the
"resolution
o[
a pre-
.""Jfy
open
or
lut"r,t.o.ifict
of
interests
limeans
of
a compromise'
he
opporitioilof interestswhich is resolvedn the compromise
nvolves
he
alior potentially
n two
different
conficts.
On
the
one
hand,
there
s the
"o'fiit
over
t(e
Price
to be
agreed
upor"r
with
the
partner
n
exchange;
,fr"
iypi."f
methoh
s bargainiig'
On
th9
other
hand,
there
may
also
be
"ornp"lririo.,
with
actual
o?pot"iti"l
rivals,
either
n
the
Plesent
or in
the
f.rtrr'r",
who
arecompetitors
n
the
same
narket'
Here,
the
typical
method
is competitive
idding
and
offering.
r.
utilities,
and
the
goods
r
labor
which
are
heir
sources'
re
un-
der
the
.o.,trol
(Etgenvhfagung)
of
an
econ-omically^
cting
ndividual
if he is
in
a
position
o
be
able
n
fact
to
makeuse
ot
them
at
nls
con-
venience
at
least,
up
to
a point)
without
interference
rom
other
per-
t"".,
t"g"taess
ol
wireth"t
hi.
ability
rests
on
the
legal
order'
on
con-
vention,on custom r on a complex
f
interests'
t
is
by.no
means
rue
thnt
oniv
the
egal
*rrrun."
of
powers
f disposal
s.decisive'
.either
or
;il';A;;;'li-i*t
r,
rr,
ho*Lu"',
today
empirically
n
indispensable
basis
or
etonomic
ctivitiy
with
the
rnaterial
means
f
Productlon.
z.
The
fact
that
good,
"'"
not
asyet
consumable
ay
be
a
result
of
the fact
that
while
th"ey
re,
as
such,
inished,
hey
are
not
yet.in
a
suit-
able
place
o,
.on*r.r'ption;
hence
he
transportation
f goods'
which
ir";;rtr;liy;
b"
dirti.tguirhed
rom
trade,.a
h.ttge
in
the
control
over
thegoods ,mayherebe" t rea tedasPa l to f theprocessofProduc t ion'
"'";.
Wi;;-i1,"*-i.
u
lu.t'
of
cJntrol
(Eigin'terfuglTQ
i'.*
desired
utilities,
t
is n prir,.ipl"
indifferent
whethe-r
he
individual
s
typically
pr"".rr"a
fro-
dorcibly
nterfering
with
the
control
of
others
y
a
legal
order,
conventio.r,
,rsiom,
is o#n
self-interest,
r
his
consciously-held
moral
standards.
4. Competition n procurementmay exist under the mostvadous
.o.rdirio.tr.
t
is
particrilarly
mportant
when
supplies
re
obtained
by
seizute,
s
n
hunting,
ishing,
umbering,
Pasturage'
nd
clearing
new
8/10/2019 1.2. Max Weber_The Economic Action
11/12
4l
Typical Measures f Rational
EconomicAction
/ 5
land. It may also, and
most frequently
does, exist
within
an organization
which is closed to outsiders.
An
order
which seeks
to
restrain such
competition
then
always
consists
in the
rationing of supplies,
usually
combined with the
appropriation of
the
procurement
possibilities
thus
guaranteed
for the benefit
of a limited
number of
individuals
or, more
often,
households. All
medieval
Mmk- and
fishing associations,
he reg-
ulation of forest clearing, pasturageand wood gathering rights in the
common
fields
and wastas,
he
grazing
rights on Alpine
meadows,
and
so
on, have this character.
Various types
of
hereditary
property-rights
n
land
owe
their development
o this type
of
regulation.
5.
Anything whiih
may in any-way
be
transferred
rom
the control
of
one
person
o that
of another and
for which
another
s willing
to give
compeniation,
may be an object
of exchange.
t
is not
restricted
o
goods
andiervices,
but includes
all
kinds
of potential
economic
advantages;
or
instance,
"good will," which exists
only
by custom
or
self-interest
and
cannot
be Jnforced;
n
particular,
however,'it
includes
all manner
of
ad-
vantages,
claims to which
are enforceable
under
some
kind
of order.
Thus"objects
of exchange
are not
necessarily resently
existing
utilities.
Fo.
pr.s"nt prr.por"i,
by
"exchange"
irr
tire broadest
senG
will
be
meant eirery .as" of a formally
voluntary
agreement
involving
the
offer
of any sort
of
present,
continuing,
or
fuiure
utility
in- exchan.ge
or
util-
ities of
"rry
roit offered
in
returi. Thus
it incl"des
-the
turning
over
of
the utility'of goods
or money
in exchange
for the
future
return
of
the
same
kind of
loods.
It also
ncludes
anylort
of..permission
or,
or,
oler-
ance
of, the ule
of an
object
n return
for
"rent"
or
"hire,"
or the
hiring
of any
kind of services
or wages
or
salary.
The
fact
that
the
last
exam-
pl"
tJd"y
involves,
from
a
soclological
point
of
view,
the
subjection
of
ih"
"*oik"r," as defined
in sec.
t b"lo*,
under
a form
of domination
will,
for preliminary
purposes,
be
neglected,
as will
the
distinction
be-
tween
oan and
purchase.
6. The
.ond^itior,,
of exchange
may
be traditional,
partly
traditional
though
enforced
by
conventio.t,"or
ratiotal.
Examples
of.
conventional
exchinges
are
exchanges
f
gifts
betwee-n
riends,
heroes,
hiefs,
princes;
as, or instance, he eichange of armor between Diomedesand Glaucos.
It
is not uncommon
for
th"ese
o be
rationally
oriented
and
controlled
to
a
high degree,
as
can
be seen
in the
Tell-el-Amama
documents.
Rationai
exchi.rge
is only possible
when
both parties-
exPect
to
profit
from
it, or when"
one
is
under
compulsion
because
of
his own
need
or
the
other's economic
power.
Exchange
may
serve
either p-urposes
of
consumption
or of
acquisition
(see
below,
sec.
Il).
It
may thus
be ori-
ented
t6
provision
foi
the
personal
use
of the
actor
or
to opportunities
for
profit.
In the
first case,
ts
conditions
are to a
large
extent
differenti-
ated
from
case o
case,
and
it is
in this
sense
rrational.
Thus,
for
in-
stance,
household
surpluses
will
be valued
according
to
the
individual
marginal
utilities
of
the
particular
}o"sehold
economy
""-d
P"y
on
oc-
casiJn be sold
very
cheaply,
and
the
fortuitous
desires
of
the moment
may establish the-marginal utility of goods which are sought in ex-
8/10/2019 1.2. Max Weber_The Economic Action
12/12
7 4
socrolocrcAl cATEcoRTES
F
EcoNoMrc AcTroN
lck.
II
change at a
very
high level.
Thus
the
exchange
ratios,
as determined by
marginal
utility, will fluctuate
widely.
Rational
competition develops
only in the caseof "marketable goods" (see sec. 8) and, to the highest
degree,when
goods
are
used
and sold n a
profit system
see
sec.
r) .
7.
The modes of intervention
of a
regulatory
system mentioned above
under
point
(4)
are not the only
possible
ones,but merely those which
are
relevant
here because
hey
are the most immediate consequences
of
a tightening of the supply basis.
The
regulation
of marketing
processes
will be
discussed elow.
5.
Types of EconornicOrganizations
According to
its
relation
to the economic svstem, an economically
oriented organization may be:
(a)
an
"economically
active organization"
(wirtschaftender Verband) if the primarily non-economic organized ac-
tion
oriented to its order
includes
economic
action;
(b)
an
"economic
organization"
(Wirtschaftsverband)
if its
organized acdon, as
governed
by the order, is
primarily
autocephalous economic action of a
given
kind;
(c)
an
"economically
regulative
organization"
(wirtschaftsregulierender
Verband)
if
the autocephalous economic activity of the
members is
directly oriented to the order
governing
the
group;
that is,
if
economic
action is heteronomous in that respect;
(d)
an
"organization
enforcing
a formal order"
(Ordnungsverband)n
if its order merely
guarantees,
by
means
of formal rules, the autocephalous and autonomous economic
activities of its members
and
the
corresponding economic
advantages hus
acquired.
L
The state, except for the socialistic
or
communist
type, and all
other
organizations ike churches
and voluntary associationsare econom-
ically
active
groups if they manage their own financial
affairs. This
is
also true
of educational nstitutions
and all other organizationswhich
are not
primarily economic.
z. In
the
category
of
"economic
organizations" in
the
present
sense
are included not
only business
corporations,
co-operative
associations,
cartels,
partnerships,and so on, but all
permanent
economic establish-
ments
(Betriebe)
which involve
the activities of a
plurality
of persons,
all
the
way
from
a workshop run
by two artisans to a conceivable commu-
nistic
organization of
the whole world.
3.
"Economically
regulative
organizations"
are the following:
medi
eval
village associations,
guilds,
trade
unions, employers'
associations,
cartels,
and all other
groups,
the directing authorities of which carry
on an
"economic
policy"
which seeks o regulate
both the ends and the
procedures of economic
activity. It thus includes the villages and towns
of the Middle Ages,
just
as much as
a
modern
state which follows such
a
policv.
- 1
) l
o
a
f
w
m
a
p
m
l
a
m
t
c
a
d
i
a
b
m
o
m
N
s
i
s
o
b
o
c
a
b
e
l
g
exc
tha
zon
acc