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.
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