Economic opportunism

Economic opportunism is a term related to the subversion of morality to profit. There exists no agreed general, scientific definition or theory of economic opportunism; the literature usually considers only specific cases and contexts. 'Although there is growing agreement that bounded rationality is the appropriate cognitive assumption for describing economic organization, there is less agreement on how the self-interestedness of economic actors should be described. Transaction cost economics has proposed that economic agents be described as opportunistic where this contemplates self-interest seeking with guile. That has turned out to be a controversial formulation.''By preferring the support of domestic to that of foreign industry, intends only his own security; and by directing that industry in such a manner as its produce may be of the greatest value, he intends only his own gain, and he is in this, as in many other cases, led by an invisible hand to promote an end which was no part of his intention. Nor is it always the worse for the society that it was not part of it. By pursuing his own interest he frequently promotes that of the society more effectually than when he really intends to promote it.' Economic opportunism is a term related to the subversion of morality to profit. There exists no agreed general, scientific definition or theory of economic opportunism; the literature usually considers only specific cases and contexts. There is no agreement about why this is so. Oliver E. Williamson comments: Market trade supplies no universal morality of its own, except the law of contract and basic practical requirements to settle transactions, while at the same time legal rules, however precise in their formulation, cannot control every last detail of transactions and the interpretation (or implications) thereof. Since economic opportunism must be assessed against some relevant norm or principle, controversy about what that norm or principle should be, makes a general definition difficult. Adam Smith famously wrote in The Wealth of Nations that: If that Smithian view is accepted, then it is difficult to establish that 'taking selfish advantage of an economic situation' can in any way be considered 'opportunist', because it does not transgress any moral principle or principle of trade. Indeed, the pursuit of self-interest is in this view beneficial for all, it is exactly what makes the market tick. Furthermore, it is in the interest of market actors to conduct their affairs properly, because if their trading reputation is destroyed, they will be out of business. If it is believed that markets gravitate spontaneously to an equilibrium state, so that price-levels ensure that everybody gets what they want, how can there be any 'opportunism'?