Handbook of new institutional economics - ISBN:3540776605

Handbook of new institutional economics

Date: 22 April 2011, 09:18

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New institutional economics (NIE) studies institutions and how institutions interact with organizational arrangements. Institutions are the written and unwritten rules, norms and constraints that humans devise to reduce uncertainty and control their environment. These include written rules and agreements that govern contractual relations and corporate governance, constitutions, laws and rules that govern politics, government, finance, and society more broadly, and unwritten codes of conduct, norms of behavior, and beliefs. Organizational arrangements are the different modes of governance that agents implement to support production and exchange. These include markets, firms, and the various combinations of forms that economic actors develop to facilitate transactions and contractual agreements that provide a framework for organizing activities, as well as the behavioral traits that underlie the arrangements chosen.

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