Economics Working Paper Archive at WUSTL
Опубликовано на портале: 05-02-2003Douglass C. North Economics Working Paper Archive at WUSTL. 1993.
North outlines five propositions about institutional change and explains its meanings. He lays out a specific agenda for the study of institutions that is different from game theoretic or spatial political modeling of institutions. The focus is a transaction cost approach to institutions and a cognitive science approach to "rational" choice. While the former--the transaction cost approach--is at least partly complementary to game theoretic approaches, the latter suggests a distinct departure from much of the current rational choice theory.
Опубликовано на портале: 05-02-2003Arthur T. Denzau, Douglass C. North Economics Working Paper Archive at WUSTL. 1993.
Denzau and North argue that ideas matter, and that the way that ideas are communicated among people is crucial to building useful theories that will enable us to deal with strong uncertainty problems at the individual level. Under conditions of uncertainty, individuals' interpretation of their environment will reflect the learning that they have undergone. Individuals with common cultural backgrounds and experiences will share reasonably convergent mental models, ideologies and institutions and individuals with different learning experiences (both cultural and environmental) will have different theories (models, ideologies) to interpret that environment. It is the argument of this essay that in order to understand decision making under such conditions of uncertainty we must understand the relationship between the mental models that individuals construct to make sense out of the world around them, the ideologies that evolve from such constructions, and the institutions that develop in a society to order interpersonal relationships.