Market, Hierarchy, and Trust: The Knowledge Economy and the Future of Capitalism

  title={Market, Hierarchy, and Trust: The Knowledge Economy and the Future of Capitalism},
  author={Paul S. Adler},
  journal={Organizations \& Markets eJournal},
  • P. Adler
  • Published 1 March 2001
  • Economics
  • Organizations & Markets eJournal
Recent conceptualizations of trends in the structure of U.S. industry have focused on the relative importance of markets, hierarchies, and hybrid intermediate forms. This paper advances the discussion by distinguishing three ideal-typical forms of organization and their corresponding coordination mechanisms: market/price, hierarchy/authority, and community/trust. Different institutions combine the three forms/mechanisms in different proportions. Economic and organizational theory have shown… 

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