The Ostroms and the contestable nature of goods: beyond taxonomies and toward institutional polycentricity

This paper builds on the Ostroms' oeuvre to suggest that the binary Samuelsonian taxonomy of goods – or the ‘sterile dichotomy’, as Elinor Ostrom calls it – cannot serve as a reliable guide for public policy. Using the Ostroms' insights on co-production, institutional matching, and polycen...

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Published in:Journal of institutional economics Vol. 17; no. 1; pp. 71 - 89
Main Authors: Rayamajhee, Veeshan, Paniagua, Pablo
Format: Journal Article
Language:English
Published: Cambridge, UK Cambridge University Press 01.02.2021
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ISSN:1744-1374, 1744-1382
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Abstract This paper builds on the Ostroms' oeuvre to suggest that the binary Samuelsonian taxonomy of goods – or the ‘sterile dichotomy’, as Elinor Ostrom calls it – cannot serve as a reliable guide for public policy. Using the Ostroms' insights on co-production, institutional matching, and polycentricity, we argue that the ‘inherent’ nature of goods and their specific taxonomy are not static and definitive concepts but are instead contestable and dynamic features that are institutionally contingent. We explore four crucial mechanisms and/or contexts, not altogether unrelated, whereby the nature of goods becomes contestable and malleable: namely, (1) technological and geographical factors, (2) coproduction and entrepreneurial ingenuity, (3) bundling and unbundling of services, and (4) ideologies and regime shifts. This exercise has twofold purposes. First, we generalize the notion that there is nothing ‘inherent’ in the nature of goods and services and that they are fluid, heterogeneous, and malleable concepts. Second, we contribute to the debate on the provision of public goods and the role of civil society by highlighting the need for institutional malleability and diversity adaptive to changing technology, contexts, and institutional conditions.
AbstractList This paper builds on the Ostroms' oeuvre to suggest that the binary Samuelsonian taxonomy of goods – or the ‘sterile dichotomy’, as Elinor Ostrom calls it – cannot serve as a reliable guide for public policy. Using the Ostroms' insights on co-production, institutional matching, and polycentricity, we argue that the ‘inherent’ nature of goods and their specific taxonomy are not static and definitive concepts but are instead contestable and dynamic features that are institutionally contingent. We explore four crucial mechanisms and/or contexts, not altogether unrelated, whereby the nature of goods becomes contestable and malleable: namely, (1) technological and geographical factors, (2) coproduction and entrepreneurial ingenuity, (3) bundling and unbundling of services, and (4) ideologies and regime shifts. This exercise has twofold purposes. First, we generalize the notion that there is nothing ‘inherent’ in the nature of goods and services and that they are fluid, heterogeneous, and malleable concepts. Second, we contribute to the debate on the provision of public goods and the role of civil society by highlighting the need for institutional malleability and diversity adaptive to changing technology, contexts, and institutional conditions.
Author Paniagua, Pablo
Rayamajhee, Veeshan
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  organization: 1Department of Agribusiness and Applied Economics (DAAE), North Dakota State University, Fargo, North Dakota, USA
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  givenname: Pablo
  surname: Paniagua
  fullname: Paniagua, Pablo
  email: veeshan.rayamajhee@gmail.com
  organization: 2Department of Political Economy (DPE), King's College London, and Senior Researcher at Fundación para el Progreso, Santiago, Chile
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Keywords Ostroms
Contestability
typology of goods
polycentricity
public goods
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RelatedPersons Ostrom, Elinor (1933-2012)
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Snippet This paper builds on the Ostroms' oeuvre to suggest that the binary Samuelsonian taxonomy of goods – or the ‘sterile dichotomy’, as Elinor Ostrom calls it –...
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SubjectTerms Civil society
Classification
Consumption
Debates
Economic theory
Ostrom, Elinor (1933-2012)
Public goods
Public policy
Public sector
Social order
Taxonomy
Title The Ostroms and the contestable nature of goods: beyond taxonomies and toward institutional polycentricity
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