The regulatory environment of the section of the non-standardized goods market
The regulatory environment of the section of the non-standardized goods market

Summary/Abstract: In this paper the behavior of economic actors with goods of uncertain quality is examined from the perspective of the sociology of markets. The analysis uses the findings of in-depth interviews conducted in 2011 and 2012 amongst small and medium-size company entrepreneurs working in the construction industry. In the Hungarian construction industry neither formal rules nor vocational chambers are able to create a safe environment for entrepreneurs. Nevertheless, networks created as a result of a series of micro-selection steps might be able to encourage the enforcement of the quality of services, the observation of deadlines and what is more, ensure payment discipline. In this market, the typically high level of risk that exists can be reduced by relationships. Networks also reduce the cost of transactions since a major part of the services in this field could only be standardized at significant cost.

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