Institutions and their strength

Frank Hindriks*

*Corresponding author for this work

Research output: Contribution to journalArticleAcademicpeer-review

7 Citations (Scopus)
66 Downloads (Pure)

Abstract

Institutions can be strong or weak. But what does this mean? Equilibrium theories equate institutions with behavioural regularities. In contrast, rule theories explicate them in terms of a standard that people are supposed to meet. I propose that, when an institution is weak, a discrepancy exists between the regularity and the standard or rule. To capture this discrepancy, I present a hybrid theory, the Rules-and-Equilibria Theory. According to this theory, institutions are rule-governed behavioural regularities. The Rules-and-Equilibria Theory provides the basis for two measures of institutional strength. First, institutions that pertain to coordination games solve problems of information. Their strength is primarily a matter of the expected degree of compliance. Second, institutions that concern mixed-motive games solve problems of motivation. Their strength can be measured in terms of the weight people attribute to its rule.

Original languageEnglish
Pages (from-to)354-371
Number of pages18
JournalEconomics and Philosophy
Volume38
Issue number3
DOIs
Publication statusPublished - Nov-2022

Keywords

  • Institution
  • normative belief
  • normative expectation
  • social norm
  • social practice

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