In Max Weber's Economy and Society, a distinguished group of scholars illuminates the central arguments of Economy and Society and appraises their contemporary relevance for the analysis of the economy, the polity, law, religion, and social action. With essays that are both theoretical and empirical, this book will be of interest to those already familiar with Weber's work and to those encountering it for the first time.

Max Weber's two most important contributions to economic sociology appeared only posthumously. Both contributions, the Fundamental Concepts of Economic Action, which appeared in Economy and Society (Weber 1990), and his General Economic History (Weber 1991), featured a definition of Wirtschaften, of economic action, which went almost unnoticed, even though Weber had given it a good deal of attention in his comments in Economy and Society. He had also started to rewrite his Herrschaftssoziologie, his political sociology, due to certain consequences stemming from that definition. As far as I can see only Talcott Parsons discussed this definition of Wirtschaften in his book on The Structure of Social Action, noting that Weber made it difficult for others to see its scope by taking it up in separate chapters on the economic and the political sociology. Wolfgang Schluchter reexamines carefully the problematic division of Economy and Society into two parts, a newer one (1918), as the first part, and an older one (1914), as the second part, which is the way the book was divided by Marianne Weber after the death of her husband Max. Schluchter notes that it is the Wirtschaftssoziologie (economic sociology) which motivates a new Herrschaftssoziologie (sociology of domination), which has to be formulated before any Rechtssoziologie (sociology of law) and Staatssoziologie (sociology of the state) make sense. Indeed, for Weber, no economic sociology should ignore the way any economic calculus is dependent on the rules securing that present sacrifices are not only being taken but are also rewarded by the keeping of promises made to justify the sacrifice. That means that a whole edifice of a present calculus of future rewards embedded within systems and institutions attempting to guarantee both the present calculus and the future cashing-in emerges, which may be called the "society" which is mentioned twice in the title of Max Weber's book: in the society being called as such explicitly, and in the innocuous word "and" separating and linking that society from, and with, the economy.

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Second, people who have limited power to begin with may form a status group in an attempt to gain greater control over economic and social resources. That is, if resources are scarce, forming a group which is able to exercise some control over the distribution of these resources may be a means of increasing the power of that group in society. The professionalization of the medical profession in the twentieth century could be an example of this and, in general, the professionalization of any occupational grouping is a means of achieving these ends. The restrictions placed on entry may be partially economic, but they are also partially social in nature, having to do with status honour and prestige. For example, some professions which have been male dominated have excluded women. It would appear that this is not so much for economic reasons as an attempt to perpetuate status distinctions constructed on particular views of what are appropriate gender relations. Parties may be formed to rationalize some of these procedures, and pursue goals of the group.

Weber defined power as the chance that an individual in a social relationship can achieve his or her own will even against the resistance of others. This is a very broad definition and includes a very wide range of types of power. In order to make this definition more useful in the study of history and society, Weber suggests domination as an alternative, or more carefully defined concept. Weber defines domination "as the probability that certain specific commands (or all commands) will be obeyed by a given group of persons" (Weber, p. 212). Features associated with domination are obedience, interest, belief, and regularity. Weber notes that "every genuine form of domination implies a minimum of voluntary compliance, that is, an interest (based on ulterior motives or genuine acceptance) in obedience" (Weber, p. 212). Examples of dominance could include parent-child relationships, employer-employee relationships, teacher-student, domination within the family, political rule that is generally accepted and obeyed, or the relation between a priest and church member.

Giddens (pp. 154 ff.) discusses various levels of legitimacy, and how these might become established over a period of time. Where people develop uniform types of conduct, Weber refers to this as usage. Long established usages become customs. These can emerge within a group or society on the basis of continued interaction, and require little or no enforcement by any specific group. A stronger degree of conformity is convention, where the compliance is not just voluntary or customary, but where some sort of sanctions may exist for those who do not comply with convention. These may be informal sanctions, leading to mild disapproval, or they may be strong sanctions associated with discipline or ostracism. For example, various forms of dress associated with the workplace can become convention, or even be enforced as rules. Usage and custom often become the basis of rules, and violation of these may ultimately have some sanctions applied.

Such authority could govern a family, household, clan, or a whole society. The leader may emerge naturally (on the basis of age), or is selected on the basis of adherence to traditional principles. As long as this method of selection is accepted by others in the grouping, the rule of the patriarch's authority must be accepted. Sydie notes that "the power of the patriarch is a personal prerogative. He is able to exercise power without restraint, 'unencumbered by rules,' at least to the extent that he is not 'limited by tradition of by competing powers.'" (Sydie, pp. 56-57). This type of authority may have few limits to the exercise of domination, and to those in modern societies the means by which people are selected for positions or the practices carried out may appear irrational.

This is very much the essence of the Weberian approach. Our task is to explore the nature of legitimacy in any society: to what extent is a society governed by legal-rational authority? Are there some elements of charismatic or traditional authority present in this social system? It is never either/or, the right question is: what is the empirical mix in any particular concrete empirical case.

The Center for the Study of Economy & Society is the leading research organization of its kind committed to the sociological study of economic action. CSES focuses on supporting advances in theory and research on institutions, organizations, networks, cultural beliefs and rationality in the study of economy and society.

Max Weber'sEconomy and Societyis the greatest sociological treatise written in this century. Published posthumously in Germany in the early 1920's, it has become a constitutive part of the modern sociological imagination.Economy and Societywas the first strictly empirical comparison of social structures and normative orders in world-historical depth, containing the famous chapters on social action, religion, law, bureaucracy, charisma, the city, and the political community with its dimensions of class, status and power. Economy and Statusis Weber's only major treatise for an educated general public. It was meant to be a broad introduction, but in its own way it is the most demanding textbook yet written by a sociologist. The precision of its definitions, the complexity of its typologies and the wealth of its historical content make the work a continuos challenge at several levels of comprehension: for the advanced undergraduate who gropes for his sense of society, for the graduate student who must develop his own analytical skills, and for the scholar who must match wits with Weber. When the long-awaited first complete English edition ofEconomy and Societywas published in 1968, Arthur Stinchcombe wrote in theAmerican Journal of Sociology:"My answer to the question of whether people should still start their sociological intellectual biographies withEconomy and Societyis yes." Reinhard Bendix noted in theAmerican Sociological Reviewthat the "publication of a compete English edition of Weber's most systematic work [represents] the culmination of a cultural transmission to the American setting...It will be a study-guide and compendium for years to come for all those interested in historical sociology and comparative study." In a lengthy introduction, Guenther Roth traces the intellectual prehistory ofEconomy and Society,the gradual emergence of its dominant themes and the nature of its internal logic. Mr. Roth is a Professor of Sociology at Columbia University. Mr. Wittich heads an economic research group at the United Nations.

Ludwig Lachmann took a strong interest in the history of economic thought, particularly as it pertained to methodology. While he would not have claimed to be an Austrian in the Misesian tradition, his writings have influenced Austrians. Here is his study of the methodological and political legacy of Max Weber, who himself influenced Mises's own methodological perspective. Lachmann zeros in on Weber's understanding of the role of institutions in society.

Weber was most interested in bureaucracy. He believed that bureaucratic coordination of activities is a hallmark of the modern and civilized society. This was not least because bureaucracies are organized according to rational principles, and rationality is an ongoing intellectual effort that is subject to education and discipline. In a bureaucratic organization offices are ranked in a hierarchical order and their operations are characterized by impersonal rules. Office holders are non-individual and those individuals holding office are fully separated from their private affairs. Recruitment and responsibility is governed by methodical allocation of areas of jurisdiction and formal spheres of duty. 3df8ca78c1