ISSN 2782-2435 (Print),
ISSN 2782-2621 (Online)

The Strategic Imperative and the Paradigm Shift in Economics

The very idea of strategic thinking is quite opposed to the tradition of linking the choices of agents, individual or collective, to the process of maximization under constraints. The theory of general equilibrium has closed the door to the notion of strategy, just as the theory of generalized free trade has closed that of sovereignty. But this paradigm is falling apart. With a new approach of radical uncertainty, something made even more obvious with the COVID-19 pandemic, we are relearning the science and art of strategy, the more so because we are living in a world of a balance of power. But what would be the definition of strategy? Quite clearly we must distinguish between state and company strategy. This debate is also at the very center of the controversy over the role and meaning of institutions in economics. There is also a variety of strategies and those having a distinct appetite for risk must seriously consider whether to practice the art of strategy or not.
Strategy , strategic thinking , uncertainty , risk , procedural rationality , individual preferences , information , knowledge
  1. Agassi J. Methodological individualism. British Journal of Sociology. 1960;11(3):244–270.
  2. Agawa H. The reluctant admiral: Yamamoto and the Imperial Navy. Tokyo: Kodansha International; 1979. 397 p.
  3. Arrow KJ. The informational structure of the firm. American Economic Review. 1985;75(2):303–307.
  4. Balakrishnan G. The enemy: An intellectual portrait of Carl Schmitt. Verso; 2002. 320 p.
  5. Becker GS. A theory of social interactions. Journal of Political Economy. 1974;82(6):1063–1093.
  6. Bellamy R. “Dethroning politics”: Liberalism, constitutionalism and democracy in the thought of F. A. Hayek. British Journal of Political Science. 1994;24(4):419–441.
  7. Betts R. Analysis, war, and decision: Why intelligence failures are inevitable. World Politics. 1978;31(1):61–89.
  8. Blaug M. Second thoughts on the Keynesian revolution. Rassegna Economica. 1987;(1):605–634. (In Ital.).
  9. Carabell AM. On Keynes’s method. London: Palgrave Macmillan; 1988. 369 p.
  10. Carlile PR. Transferring, translating, and transforming: An integrative framework for managing knowledge across boundaries. Organization Science. 2004;15(5):555–568.
  11. Carry A. Uncertainty in the writings of Kondratiev. In: Schmidt C, editors. Uncertainty in Economic Thought, Cheltenham: Edward Elgar; 1996. pp. 126–145.
  12. Chandler AD. Strategy and structure: Chapters in the history of the American industrial enterprise. Cambridge: M.I.T. Press; 1962. 490 p.
  13. Davidson P. Some misunderstanding on uncertainty in modern classical economics. In: Schmidt C, editor. Uncertainty in Economic Thought. Cheltenham: Edward Elgar; 1996.
  14. de Groot A. Thought and choice in chess. La Haye: Mouton; 1965. 479 p.
  15. Dixit KA, Nalebuff BJ. Thinking strategically: the competitive edge in business, politics and everyday life. New York: W. W. Norton and Company; 1991. 393 p.
  16. Foch F. The Principles of War. Lectures given at the École supérieure de guerre. Paris: Berger-Levrault; 1903. 375 p.
  17. Garthoff RL. Intelligence assessment and policymaking: A decision point in the Kennedy administration. Washington: Brookings Institution; 1984. 53 p.
  18. Georgescu-Roegen N. Mechanistic dogma in economics. British Review of Economic Issues. 1978;2:1–10.
  19. Giesey RE. The king never dies. The royal funeral in Renaissance times. Paris: Flammarion; 1992. 360 p. (In French).
  20. Hahn FH. Keynesian economics and general equilibrium theory: reflections on some current debates. In: Harcourt GC, editor. The microeconomic foundations of macroeconomics. London: Palgrave Macmillan; 1997. pp. 25–40.
  21. Heidegger M. Essays and conferences. Paris: Gallimard; 1958. 349 p. (In French).
  22. Henninger L. Fluid spaces and solid spaces: a new strategic reality? National Defense Journal. 2020;(753):5–7. (In French).
  23. Joxe A. Travels to the sources of war. Paris: Presses universitaires de France; 1993. 448 p. (In French).
  24. Kahneman D, Knetsch JL, Thaler RH. Anomalies: The endowment effect, loss aversion, and status quo bias. Journal of Economic Perspectives. 1991;5(1):193–206.
  25. Kervégan J-F. What to do with Carl Schmitt. Paris: Gallimard; 2011. 336 p. (In French).
  26. Keynes JM. The general theory and after: Part II. Defence and development. London: Macmillan; 1973. 584 p.
  27. Keynes JM. The general theory of employment, interest and money. Paris: Payot; 1988. pp. 162–163. (In French).
  28. Kincaid H. Reduction, explanation and individualism. Philosophy of Science. 1986;53(4):492–513.
  29. Kogut B, Zander U. Knowledge of the firm and the evolutionary theory of the multinational corporation. Journal of International Business Studies. 1993;24(4):625–645.
  30. Koopmans TC. Stationary ordinal utility and impatience. Econometrica. 1960;28(2):287–309.
  31. Kvint V. Strategy for the global market. New York: Routledge; 2016. 519 p.
  32. Kydland FE, Prescott C. Rules rather than discretion: The inconsistency of optimal plans. Journal of Political Economy. 1977;85(3):473–491.
  33. Lehmann-Ortega L, Le Roy F, Garrette B, Dussauge P, Durand R. Strategor. The whole business strategy. Paris: Dunod; 2013. 704 p. (In French).
  34. Lichtenstein S, Slovic P. Reversals of preference between bids and choices in gambling decisions. Journal of Experimental Psychology. 1971;89(1):46–55.
  35. Marrin S. The 9/11 terrorist attacks: A failure of policy not strategic intelligence analysis. Intelligence and Na-tional Security. 2011;26(2–3):182–202. https://
  36. Minc A. Happy globalization. Paris: Pocket; 1999. 208 p. (In French).
  37. Morison SE. History of United States naval operations in World War II. Volume III. The rising sun in the pacific, 1931–April 1942, Boston: Little, Brown; 1988. pp. 136–139.
  38. Myrdal G. Monetary equilibrium. London: W. Hodge; 1939. 214 p.
  39. O’Driscoll GP, Rizzo MJ. The economics of time and ignorance. London: Routledge; 1996. 300 p.
  40. Olson M. The logic of collective action. Cambridge: Harvard University Press. 1965.
  41. Penrose ET. The theory of the growth of the firm. Oxford: Blackwell; 1959. 272 p.
  42. Perez YA. The virtues of protectionism. Crises and globalization, the surprising lessons of the past. Paris: Edition du Toucan; 2020. 288 p. (In French).
  43. Porter ME. Strategic choices and competition. Techniques for analyzing sectors and industry competition, Paris: Économica; 1982. 426 p. (In French).
  44. Priest KL, Seemiller C. Past experiences, present beliefs, future practices: Using narratives to re(present) leader-ship educator identity. Journal of Leadership Education. 2018;17(1):93–113.
  45. Radner R. Bounded rationality, indeterminacy and the theory of the firm. Economic Journal. 1996;106(6):1360–1373.
  46. Ramstad Y. A pragmatist’s quest for holistic knowledge: The scientific methodology of John R. Commons. Journal of Economic Issues. 1986;20(4):1067–1105.
  47. Robinson J. Time in economics. Kyklos. 1980;33(2):219–229.
  48. Sapir J. Black holes in economics. Essay on the impossi­bility of thinking about time and money. Paris: Albin Michel; 2000. 336 p. (In French).
  49. Sapir J. Book review by V. Kvint “Strategy for the global market: theory and practical applications”. Russian Journal of Industrial Economics. 2020;12(3):377–384.
  50. Sapir J. Economists against democracy – Economists and economic policy between power, globalization and democracy. Paris: Albin Michel; 2002. 272 p. (In French).
  51. Sapir J. Institutions and institutionalism: what, why and how. Collection of reports of the scientific conference Where to go? Reforming institutes and political economics in Russia; 2020; Moscow. Moscow: Znanie-M; 2020. p. 40–94.
  52. Sapir J. Sovereignty, democracy, secularism. Paris: Michalon; 2016. 320 p. (In French).
  53. Sapir J. What an economy for the 21st century. Paris: Odile Jacob; 2005. 491 p. (In French).
  54. Schmitt C. Land and sea. Paris: Pierre Guillaume de Roux éditions; 2017. 240 p. (In French).
  55. Schmitt C. Legality, legitimacy. Paris. 1936. (In French).
  56. Schmitt C. Political theology. Paris: Gallimard; 1988. 182 p. (In French).
  57. Shackle GLS. Expectations in economics. Cambridge: University Press; 1949. 146 p.
  58. Shackle GLS. On the nature of profit. In: Frower SF, editors. Business, time and thought. Selected papers of G.L.S. Shackle. London: Palgrave Macmillan; 1988. pp. 104–123.
  59. Shackle GLS. Time in economics. Amsterdam: North-Holland Publishing Company; 1967.
  60. Shackle GLS. Uncertainty in economics and other reflections. Cambridge: Cambridge University Press; 1955. 267 p.
  61. Simon HA. From substantive to procedural rationality. In: Latsis SJ, editors. Method and appraisal in economics, Cambridge: Cambridge University Press; 1976. pp. 129–148.
  62. Simon HA. Rationality as process and as product of thought. American Economic Review. 1978;68(2):1–16.
  63. Simon HA. Theories of bounded rationalities. In: McGuire CB, Radner R, editors. Decision and organization: A volume in honor of Jacob Marschak, Amsterdam: North-Holland; 1972. pp. 161–178.
  64. Söderholm A. Project management of unexpected events. International Journal of Project Management. 2008;26(1):80–86.
  65. Taleb NN. Black swan and domains of statistics. The American Statistician. 2007;61(3):198–200.
  66. Taleb NN. Fat tails, asymmetric knowledge, and decision making: essay in honor of Benoit Mandelbrot’s 80th birthday. Willmott: Technical paper series; 2005. pp. 56–59.
  67. Taleb NN. The black swan: the impact of the highly improbable. Second Edition. London: Random House Trade Paperbacks; 2010. 444 p.
  68. Tversky A, Kahneman D. Loss aversion in riskless choice: A reference-dependent model. Quarterly Journal of Economics. 1991;106(4):1039–1061.
  69. Tversky A, Kahneman D. Rational choice and the framing of decisions. Journal of Business. 1986;59(4):S251–S278.
  70. Tversky A. Rational theory and constructive choice. Rational foundations of economic behaviour: materials IEA Conference on the rational foundations of economic behaviour; 1996; Turin. Turin, 1996. p. 185–197.
  71. Uittenhove K, Poletti C, Dufau S, Lemaire P. The time course of strategy sequential difficulty effects: an ERP study in arithmetic. Experimental Brain Research. 2013;227(1):1–8.
  72. Van Creveld M. Command in war. Cambridge: Harvard University Press; 1985. pp. 155–168.
  73. Weintraub ER. General equilibrium analysis. Studies in appraisal. Cambridge: Cambridge University Press; 1985. 208 p.
  74. Weiss JN, Rosenberg S. Sequencing strategies and tactics. In: Burgess G, Burgess H, editors. Beyond Intractability, Boulder: Conflict Information Consortium, University of Colorado. 2003.
  75. Savkin VE. Basic principles of operational art and tactics. Moscow: Voenizdat; 1972. 375 p. (In Russ.)
  76. Sapir J. Basic principles of economic sovereignty and the question of the forms of its exercise. Problemy Prognozirovaniya. 2020;179(2):3–12. (In Russ.)
  77. Svechin AA. Strategy. Moscow: Voennyy vestnik; 1927. 265 p. (In Russ.)
How to quote?
Sapir Jacques The Strategic Imperative and the Paradigm Shift in Economics. Strategizing: Theory and Practice, 2021, vol. 1, no. 1, pp. 1-14
2782-2435 (Print) /
2782-2621 (Online)
About journal