1This is a case of what Samuel Bowles and Herbert Gintis have labelled contested exchange in their Schooling in Capitalist America, New York: Basic Books, 1976. An exchange is contested when the good exchanged possesses an attribute that is valuable to the buyer, costly to provide, and is at the same time difficult to measure or otherwise not subject to determinate contractual specification. Contested exchange markets do not generally clear in competitive equilibrium.

2The term ‘black box’ can be viewed here as a euphemism for a pig in a poke.

3A. Giddens, The Constitution of Society: Outline of the Theory of Structuration, Cambridge: Polity Press, 1984.


1C. Freeman and C. Perez, ‘Structural ...

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