Commons on institutional economics

Professor Commons presents a new synthesis of economic and social data which is based largely upon the pragmatism of John Dewey's social philosophy and social psychology. The pragmatic approach facilitates realistic economic analysis, but is open to several weaknesses -namely, the crucial selection of a method of settling pragmatic conflicting claims of economic interests may be too narrow; the pragmatic tests of survival, results, and workability may degenerate into a justification insetad of a critical analysis of existing economic processes; and the maintenance of a consisent relative point of view may be extremely difficult for certain economic problems. Professor Commons' Institutional Economics seems to show these weaknesses, particularly with regard to the analysis of reasonable value, futurity, and intangible property. The analysis of efficiency and scarcity, with a few exceptions, presents an excellent institutional description of the rather extensive field of imperfect competition or monopolistic competition. The treatment of economic reform in term of pragmatic idealism could be improved by the use of specific experimental standards of performance and by the recognition of the important role which educational institutions may play in the formation of economic interests and policy.