Evolution of ILE Ideas: Reviewing some of Schmid's older work

As we continue to learn about the evolution of ILE, a review of some of the older work by Prof. Al Schmid is a helpful guide.  In 1964, Schmid edited and wrote a book called "Agricultural Market Analysis" with his longtime colleague James Shaffer (my IE class was with both of them in 1993 at MSU).

Schmid and Sahffer wrote chapter two this text and included some key definitions that are helpful in understanding the evolution of ILE.  these are all quotes from that text:

"Position is the name or social symbol identifying a particular set of role images identifying an individual in relation to the other. Each position carries right and obligations"

"Institution is defined as an enduring organized set of related positions directing energies of individuals towards a common end". (This is quite different from the definition Al would later use).

"Social system is the aggregation of institutions defining the relationships of any group of individuals"

"Economic system is that particular subset of institutions defining the limits of activity and dependence among individuals in the provision and use of goods and services within a society"

"Personality is formed largely through the interaction of members of a society within the framework of existing institutions"

"Marketing system is the complex pattern of institutions and physical facilities which relate human beings and things in the transfer of goods and services"

"that subset of the social system governing transactions between individuals and groups which results in the exchange of property rights fo future control over assets will be referred to here as the exchange system"

"exchange rules define the content of property rights. they help define the role of the economic decision maker"

"Performance results are used here to mean attributes of general well being."

"An important issue in any economic transaction is the use of power to affect the exchange ratio (price)"

So here we have the beginning of the Schmid ILE model.  The words performance and idea of structure are being used. In this piece we also encounter the idea of social positions and psychology playing an important role.  The idea of the first "S" in "SSP" is not there yet. A key point Schmid and Shaffer make the  performance point that it can be about efficiency or freedom.  This was essential to ILE that efficiency in and of itself did not mean much and was a function of the property rights and institutional structure in place in a society. As early as 1964, we see the first indications of the new subfield of ILE.

*Schmid, A. Allan, and James Shaffer. "Marketing in social perspective." Agricultural market analysis (1964).

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