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The Ostroms and the contestable nature of goods: beyond taxonomies and toward institutional polycentricity

Published online by Cambridge University Press:  07 August 2020

Veeshan Rayamajhee Open the ORCID record for Veeshan Rayamajhee [Opens in a new window]  and
Pablo Paniagua
Veeshan Rayamajhee*
Affiliation:
Department of Agribusiness and Applied Economics (DAAE), North Dakota State University, Fargo, North Dakota, USA
Pablo Paniagua*
Affiliation:
Department of Political Economy (DPE), King's College London, and Senior Researcher at Fundación para el Progreso, Santiago, Chile
*
*Corresponding author. Email: veeshan.rayamajhee@gmail.com and pablo.paniagua_prieto@kcl.ac.uk
*Corresponding author. Email: veeshan.rayamajhee@gmail.com and pablo.paniagua_prieto@kcl.ac.uk
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Abstract

This paper builds on the Ostroms' oeuvre to suggest that the binary Samuelsonian taxonomy of goods – or the ‘sterile dichotomy’, as Elinor Ostrom calls it – cannot serve as a reliable guide for public policy. Using the Ostroms' insights on co-production, institutional matching, and polycentricity, we argue that the ‘inherent’ nature of goods and their specific taxonomy are not static and definitive concepts but are instead contestable and dynamic features that are institutionally contingent. We explore four crucial mechanisms and/or contexts, not altogether unrelated, whereby the nature of goods becomes contestable and malleable: namely, (1) technological and geographical factors, (2) coproduction and entrepreneurial ingenuity, (3) bundling and unbundling of services, and (4) ideologies and regime shifts. This exercise has twofold purposes. First, we generalize the notion that there is nothing ‘inherent’ in the nature of goods and services and that they are fluid, heterogeneous, and malleable concepts. Second, we contribute to the debate on the provision of public goods and the role of civil society by highlighting the need for institutional malleability and diversity adaptive to changing technology, contexts, and institutional conditions.

Keywords

ContestabilityOstromspolycentricitypublic goodstypology of goods
Type
Research Article
Information
Journal of Institutional Economics , Volume 17 , Issue 1 , February 2021 , pp. 71 - 89
Copyright
Copyright © Millennium Economics Ltd 2020

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