Algorithmic Management and the Social Order of Digital Markets

Bibliographic Data

ID2059982
AuthorsGeorg Rilinger (0000-0002-7735-3379, Massachusetts Institute of Technology, corresponding author)
Year2024
Volume53
Issue4
Pages765-794
Publication date2024-08-01
Peer ReviewedYes
Open AccessYes
TypeARTICLE
VenueTheory and Society (JOURNAL)
Journal identifiersISSN: 0304-2421 • E-ISSN: 1573-7853
PublisherSpringer Science and Business Media LLC (PUBLISHER)
DOI10.1007/s11186-024-09555-6
OpenAlexW4396873204
LanguageEN
Citations received6
References cited134

Platform companies use techniques of algorithmic management to control their users. Though digital marketplaces vary in their use of these techniques, few studies have asked why. This question is theoretically consequential. Economic sociology has traditionally focused on the embedded activities of market actors to explain competitive and valuation dynamics in markets. But restrictive platforms can leave little autonomy to market actors. Whether or not the analytical focus on their interactions makes sense thus depends on how restrictive the platform is, turning the question into a first order analytical concern. The paper argues that we can explain why platforms adopt more and less restrictive architectures by focusing on the design logic that informs their construction. Platforms treat markets as search algorithms that blend software computation with human interactions. If the algorithm requires actors to follow narrow scripts of behavior, the platform should become more restrictive. This depends on the need for centralized computation, the degree to which required inputs can be standardized, and the misalignment of interests between users. The paper discusses how these criteria can be mobilized to explain the architectures of four illustrative cases

Business · Economic system · Economics · Political science · Social order · Sociology · Blockchain Technology Applications and Security · Computer Science · Digital Economy and Work Transformation · Digital Platforms and Economics · Finance

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