Endogenizing Institutions and Their Changes

Journal of Institutional Economics, Forthcoming

39 Pages Posted: 26 Jul 2006

Abstract

This paper proposes an analytical-cum-conceptual framework for understanding the nature of institutions as well as their changes. First, it proposes a new definition of institution based on the notion of common knowledge regarding self-sustaining features of social interactions with hope to integrate various disciplinary approaches to institutions and their changes. Second, it specifies some generic mechanisms of institutional coherence and change - overlapping social embeddedness, Schumpeterian innovation in bundling games and dynamic institutional complementarities - useful for understanding the dynamic interactions of economic, political, social, organizational and cognitive factors.

Keywords: institution, institutional change, common knowledge, institutional complementarities, embededdness

JEL Classification: 011, 053

Suggested Citation

Aoki, Masahiko, Endogenizing Institutions and Their Changes. Journal of Institutional Economics, Forthcoming. Available at SSRN: https://ssrn.com/abstract=918620

Masahiko Aoki (Contact Author)

Stanford University ( email )

E314 Encina Hall
Stanford, CA 94305-6015
United States
415-723-3975 (Phone)
415-725-5702 (Fax)

HOME PAGE: http://www.stanford.edu/~aoki

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