Policy and profession in economisation processes

Economisation
Rather than asking what the economy (noun) is, there has been a shift towards defining observable criteria which enables one to say that an activity, behaviour or institution is economic (adjective) (Caliskan & Callon) How is something made into an economic entity? By what means?

Examples
Things in the market, agencies, encounters, prices, market maintenance The study of market devices
Algorithms, trading robots, price calculations

Basically, tools
These can be followed

How is this innovative?

Contrast to other economic sociology, which (sometimes) presumes a fixed social context
Embeddedness

Following the materiality can account for changes in the economy

New tools, new methods lead to a new economy Look for change in unexpected places (Muniesa)

Questions
Where are professions in this?
What is the difference between an economist and an engineer? Could professions be defined by the tools they use?

What about not-markets?

Re-regulation Over-emphasis on market actors?

The electricity sector in Norway before

Utility

Production

Customers

Grid

Maintenance

Investments

Maintenance

Investments

Then
Regional monopolies Prices determined by Parliament
Ideas of control

Based on engineers predictions of long-term marginal cost

The electricity sector in Norway now

Production utility

Maintenance

Investments

Customers

Income from sale of electricity to customers (also, other utilities and abroad). Low costs

Grid company

Maintenance

Investments

Customers

Income from grid tariff. High costs

Now
Price set in market for production utilities Economic tools taken over
Consumer price information Electricity trading

Traders

Consumers

Economisation?
Low price elasticity Few care about price arbitrage
But many care about prices

Still, economists have had their way

But what about the grid companies?

Still natural monopolies Income strictly regulated to avoid misuse of monopoly status One example: Complaints regarding decisions about income roof for 2007 (NVE 200802911-12) Site of battle

Allowed income
Grid costs

Property tax Delivery loss compensation

TI[year] = IR[year] + KON[year] + E[year] - KILE[year]

Income roof Cost basis from NVE Investment addition

IR[year] = 0,5K[year] + 0,5K*[year] + JP[year]

Cost basis from company
*year+ *year2+

K[year] = (DV[year-2] + KILE[year-2])

+ NT[year-2]

P[year] + AVS[year-2] + AKG[year-2] r[year]

Who is in control here?

Engineers?

Economists?
K[year] = (DV[year-2] + KILE[year-2])
*year+ *year2+

+ NT[year-2]

P[year] + AVS[year-2] + AKG[year-2] r[year]

Legal considerations
Basically, it is not an Energy Act at all *+ It might work as a market law, but for regulating the production of energy, it is no good

Some thoughts
Following the tools yields some insights
But care must be taken

These sites of battle are far away from participatory democracy We can never simply calculate because we must do so with units and instruments of measurement that are deeply structured by accounts of what can be of value (Stark 98)