Culture and the Evolution of Economic Institutions: A Model of Individual Adaptation and Group Self-Organization
36 Pages Posted: 18 Feb 2013
Date Written: December 12, 1992
In this paper I explore the process of self-organization as it relates to the transition from capitalism to socialism in two contexts: (1) Eastern Europe and the former Soviet Union, where political and economic institutions are being created at the same time, and (2) the People's Republic of China, where the process of creating market institutions is being guided by a strong central authority. I propose that in both cases, the force that guides self-organization is culture, where culture is defined (inadequately, but tractably) as the shared preferences which identify a group.
Keywords: entrepreneurship, institutions, culture, adaptation, self-organization, complexity, transition economies, production recipes
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