Autopoietic Social Systems Theory: the Co-evolution of Law and the Economy

his paper explores the relationship between regulation and contracts from the point of view of autopoietic social systems theory. This theory is mainly identified with the theoretical model developed by Luhmann (1990; 1995 [1984]) that applies the theory of autopoiesis to social phenomena, providing a new paradigm for thinking about the relationship between the legal system and other social systems in society. Considering that contract is understood here as a structure for the governance of exchange (Deakin & Wilkinson 1995), and that regulation is defined as any system of rules intended to govern the behaviour of its subjects that involves the core elements of standards, monitoring and sanctions (Collins 1999), the purpose of this paper is to emphasize how autopoietic social systems theory calls for reflexivity in regulatory strategies. The theory of autopoietic social systems theory is complex, and its presentation involves several difficulties: it draws upon a number of contributions in several specialised fields; it represents a challenge – or a ‘fully-fledged change of paradigm’ (Teubner 1992, p. 1445) to the dominant view of systems (that is, open systems theory); and some of its main con-