Power and entrepreneurship

Entrepreneurship research has benefited from embracing three economic sociology lenses-networks, cognition, and institutions-but has treated power mainly implicitly. This paper pioneers how the concept of power can advance research into entrepreneurship. We illustrate how state actors, legacy firms, and entrepreneurs variously exert coercive, persuasive, and authoritative forms of power over entrepreneurial opportunities or exercise power to pursue them as free actors. We explicitly link context and opportunity-development processes through a power lens and show how power's interaction-focused and episodic nature that can transcend geographical and institutional boundaries might enrich entrepreneurship research.

Uncertainty and risk: A framework for understanding pricing in online drug markets

BACKGROUND

The pricing of illicit drugs is typically approached within the risks and prices framework. Recent sociological and economic studies of prices in online drug markets have stressed the centrality of reputation for price formation. In this paper, we propose an account of price formation that is based on the risks and prices framework, but also incorporates internal social organization to explain price variation. We assess the model empirically, and extend the current empirical literature by including payment methods and informal ranking as influences on drug pricing.

METHODS

We apply our model to estimate the prices of cannabis, cocaine, and heroin in two online drug markets, cryptomarkets (n = 92.246). Using multilevel linear regression, we assess the influence of product qualities, reputation, payment methods, and informal ranking on price formation.

RESULTS

We observe extensive quantity discounts varying across substances and countries, and find premia and discounts associated with product qualities. We find evidence of payment method price adjustment, but contrary to expectation we observe conflicting evidence concerning reputation and status. We assess the robustness of our findings concerning reputation by comparing our model to previous approaches and alternative specifications.

CONCLUSION

We contribute to an emerging economic sociological approach to the study illicit markets by developing an account of price formation that incorporates cybercrime scholarship and the risks and prices framework. We find that prices in online drug markets reflect both external institutional constraint and internal social processes that reduce uncertainty.

Post-purchase Federal Financial Aid: How (in)Effective is the IRS's Student Loan Interest Deduction (SLID) in Reaching Lower-Income Taxpayers and Students?

Federal financial aid policies for higher education may be classified based on their "for-purchase" and "post-purchase" natures. The former include grants, loans, and workstudy and intend to help students finance or afford college attendance, persistence, and graduation. Post-purchase policies are designed to minimize financial burdens associated with having invested in college attendance and are granted as tax incentives/expenditures. One of these expenditures is the IRS's Student Loan Interest Deduction (SLID)-which offers up to $2500 as an adjustment for taxable income based on having paid interest on student loans and has an annual cost of $12.81 billion-about 45.7% of the Pell grant cost. Despite this high cost, SLID has remained virtually unstudied. Accordingly, the study's purpose is to assess how (in)effective SLID may be in reaching lower-income taxpayers. To address this purpose, we relied on an innovative analytic framework "multilevel modelling with spatial interaction effects" that allowed controlling for contextual and systemic observed and unobserved factors that may both affect college participation and may be related with SLID disbursements over and above income prospects. Data sources included the IRS, ACS, FBI, IPEDS, and the NPSAS:2015-2016. Findings revealed that SLID is regressive at the top, wealthier taxpayers and students attending more expensive colleges realize higher tax benefits than lower income taxpayers and students. Indeed, 75% of community college students were found to not be eligible to receive SLID-data and replication code (https://cutt.ly/COyfdKC) are provided. Is this the best use of this multibillion tax incentive? Is SLID designed to exclude the poorest, neediest students? A policy similar to Education Credits, focused on outstanding debt rather than on interest, that targets below-poverty line students with up to $5000 in debt, would represent a true commitment, and better use of public funds, to close socioeconomic gaps, by helping those more prone to default.

Group conditions for entrepreneurial visions: role confidence, hierarchical congruences, and the imagining of future in entrepreneurial groups

An essential part of entrepreneurial activity is the drafting and narrating of an entrepreneurial vision. This study is premised on the observation that entrepreneurial groups form an interaction arena for the practice of imagining the future and asks how the content of entrepreneurial visions is shaped by the conditions of the group. Taking an entrepreneurship-as-practice lens, which we enrich with sociological theory on the future (Beckert) and small groups (Fine), we engage in an in-depth case study of 12 entrepreneurial groups. We show how the content of entrepreneurial visions is configured by four elements (i.e., fictional expectation for the business or the group; future orientation that is continuing or divergent) and name two group conditions (i.e., role confidence and hierarchical congruence) that direct their configuration. We propose that lacking role confidence can impede thinking about the future of a business and that narrative hierarchies that challenge structural hierarchies can open a window for divergent future orientation. This study contributes to a novel theoretical understanding of where entrepreneurial visions come from by emphasizing politics of expectations within groups and calling to consider group conditions as a relevant context for entrepreneurial visions.

Supplementary Information

The online version contains supplementary material available at 10.1007/s11187-021-00566-6.

Editors' introduction to the special issue on the sociology of digital technology

An increasing number of sociologists today are examining the social production of digital technology. Although younger researchers may be digital natives and write from "within the algorithm," and older sociologists may begin by trying to define terms and concepts that have become commonplace in the tech "space," all share the goal of unpacking the "black box" of computer software by analyzing how, where, and by whom it is developed and asking who benefits most by its use. Some of the articles in this special issue of Theory and Society focus on questions of connectivity, privacy, and equity in light of classical sociology's concern with the state, the self, knowledge, and power; others look critically at forms of inequality in the operations of specific platforms, algorithms, urban tech ecosystems, and coworking spaces.

Market Fashioning

How do markets come about? This article offers a first systematic analysis of three different ideal types of market fashioning: mutual adjustment, organization, and fields. Although aspects of these are identifiable in most empirical markets, these three ideal types provide analytic tools for students of real markets and marketplaces. After going through this comprehensive literature, it is argued that mutual adjustment, which refers to non-planned processes, is affinity with markets in which products are differentiated, for example, producer markets. Organization refers to process driven by attempts to decide for others and shows affinity with markets for standardized and homogenous products, for example, stock exchanges. Organization also accounts for the making of marketplaces. The broader notion of fields does not refer to any specific process, but accounts for the context of market fashioning and its respective power struggles.

Just Another Level? Comparing Quantitative Patterns of Global Expansion of School and Higher Education Attainment

The expansion of higher education enrollment and attainment is a key uncertainty in the education profile of future populations. Many studies have examined cross-national determinants of higher education expansion as well the understanding of expansion through the relationship between higher education and the labor market. Early work established a typology for levels of enrollment, but recent empirical studies on the global growth of higher education attainment are scarce, and available projections resort to imposing ad hoc limits on future expansion. This study addresses this gap by comparing the trajectories of higher education expansion with those experienced at other levels on their course to universal or near-universal access. We demonstrate that a population-level model of expansion toward universal access fits higher education as well as lower levels of education (i.e., primary and secondary education). In other words, that there is no prima facie evidence of a ceiling in higher education enrollment that would indicate saturation significantly below 100 % participation. Claims that are premised on such a ceiling should therefore consider empirical evidence for this assumption in their analysis. These findings contribute to discussions on higher education expansion as well as studies of higher education and the labor market.

Does a rising tide lift all boats? Liberalization and real incomes in advanced industrial societies

Many scholars argue that liberalization increases both economic growth and income inequality in developed economies. However, there is limited research on how liberal economic policies shape the earnings of different income groups in the national economy. The current study thus attempts to fill this gap in the literature by examining a panel dataset of 15 advanced industrial societies during the years 1970-2010. According to the results, long-run measures of liberalization increase the incomes of the top 0.1%, but does not return significant results for the incomes of the top 1.0% and top 10%. Furthermore, no discernible effect of liberalization is observed for the incomes of the bottom 90%. When taken together, although most researchers focus on inter-group inequality by examining how liberalization augments the incomes of top earners vis-à-vis bottom earners, the evidence of this study indicates scholars should also focus on intra-group inequality among top earners, as liberalization seems to benefit only a very small segment of elite earners in the national economy.