Comment: Controversies and evidence in the market transition debate

Despite repeated attempts to integrate competing perspectives (Szelenyi and Kostello 1996; Nee and Matthews 1996), the ongoing market transition debate has shown no signs of resolution. Instead, the 1996 AJS market transition symposium seems to have created more controversy than it settled (Nee 1996; Xie and Hannum 1996; Oberschall 1996; Parish and Michelson 1996; Walder 1996; Fligstein 1996; Szelényi and Kostello 1996). And subsequent studies continue to reach nearly opposite conclusions (cf. Bian and Logan 1996; Gerber and Hout 1998; with Brainerd 1998; Nee and Cao, in press). "When arguments become polarized, it often signals that divisions are falsely drawn" (Bates 1997). Although originally made in another context, this observation is applicable here. As principals in this lively debate, we believe that clarification and reevaluation are essential for moving toward a reconciliation of competing viewpoints. In this comment we therefore identify the central issues in the controversy and provide an overall assessment of existing empirical evidence.