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    8 views15 pages

    North 1990

    Uploaded by

    aadelacruz1

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    © All Rights Reserved
    Download as PDF or read online from Scribd
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    of 15
    THE POLITICAL ECONOMY OF INSTITUTIONS AND DECISIONS Douglass North, Was St. Lois Other books in the series Yoram Barzel, Evonowsie Aualysis of Property & Bates, Reyond the Miracle of the Mark icononty of Agrarian Devefopmant in Cabines amd the England Budget Reform Poltires: The Design of Process i the House of Representatives, wGsmsgar INSTITUTIONS, INSTITUTIONAL CHANGE AND ECONOMIC PERFORMANCE DOUGLASS C. NORTH CAMBRIDGE UNIVERSITY PRESS UELISHED BY THE ERESS SYNTHCATE OF TIILUMIVERSETY OF Cab gRIDGE ‘The Pee Building, Tranplngion Suser, Cambridge, United Kihgdont Casings UNITARY LSS Ti itn Meg, Combe on bapstwwuecarnbridge.ore ‘S.Combridge University heen 1950 Figs published 1990 asa, U5, 1946 amice!, 98, 2002 “Typeset ia Sebo British dnt A catalog resord for this back i ava fo ISBRY 0.521 316 3 hardback ISBN 0 524 39734 0 paperback ferred cadigitel pinto 203 Contents Series editor's preface Preface Parr | Inscitutions tutions and institutional change problern heory af instieutions. Cooperation: rhe theoret Enforcement tations and transaction and transinrmarian 6oses Bee Inguicotignal change 9 Organizations, learning, and institutional change rt "3 4 References Index page vi n 7 ar 6 Sa é B a 17 8 a3r aga war I An introduction to institutions and institutional change Enscitutigne are the ru humanly devised con quence they st in a society or, more formally, are the hat shape human interaction, - n exchange, whether political ic. Institutional . Our theory must include moe only the tatining. processes loo the processes that gencrare she actor’ subjective representati6d of the Uecrsion probes, his or her frame in w-leezial eccncmias always reaches the decisiom tbat ely oF suBstaneively, sy means of computataan. tof dhe avatable Knowledge and inom, 1986, pp 3310-13) Simon's statement captutes the essence of Why, in roy view, the subjec fe and incomplete processing af informacian plays a cr fon making. It accounts for ides, based upon subj tums of ceality, playing » majar part co play the cumplesiey ling effores we make ved patterns of hur he CO-gan a maberker tothe based upon ¢ the mare likely the agencs wi en Of tebponse to be able to de We can summarize the issues discussed above by returning to the cla forse and reacting to the seven points Winter sets forth 1, For some putposes the conczpt of aqui analysis, bot for moar of the issues thac we are concerned w ‘ene equilibrium, bw he ey ontinuiurs of theories that agents can hold and. act on ¥ encountering events which Head them to change dhelr cheaies 1987 Bs Sash 2, Although sndividaal actors faee stany repetitious situations and, as nored above, ci att cationally in such siruations, they also sre fronted sith many u 26 where the informa ron 3. Although Becker and § pressive case (977) for tetative peice changes ac appacent changes prefers anomalies show Up earch has been con to improve outcomes, feedback may be 50 poor thas che actor cannot identify bette jon may be so mixed and the signals so confused cha adjustment may be slaw ot misguided and the classic evelucionary conse qUEHGRS MAY Hol Obtdin for very long pectods of cime. hhgughont history provides ove \whelming. evidence of much more than simple rational noncooperat behavior viotal assumptions af cconamists arc us; certain yroblems, They are inadequate to deal with many ientists and ate the Jundémental stumbling block preventing on understanding uf the exiarence, fernsation, and evolution of im bens. 24 Behavioral assumptions v it would be nige au conclude this chapter wich a previve 4nd tidy behave iaral model that nog oly explained why institutions are a nectssary extension of the way human beitigs process informati dicted rhe vomplex mii of motivations that shape che toward doing so; indeed chough to explain the existence of the motivarion af the actors that helps ro the Miédns by which aleruism and oshor ring values enter the choice set. ier AQ weduce the Unser ta ia involved in hee wnceriaintia arise a8 consequence of both the problems to be solved and the probiemn-sobing software f computer analogy possessed by the above staternenc inva interac The complexity of ited processing ability of the actor, can subjective perceptions of rea ind even the sense of faitness ot 9 fairness that the indis “Te take cassie Mustea- btiletérién could feel Or she was being exploited by the boutgeuisic, or how the lare- mer could feel the sailroad #745 responsible for both cases there were ready-made ideolugical construcis that accounted for theie plight, But the fact that individuals ion those perceprions te overcontg the frce-rider problem is more jicult to- expla broad range of human actions charaeletized by such ac he anonymous free donatian af blood, the dedic wees such 8

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