Institutions and Economic Theory: The Contribution of the New Institutional Economics (Economics, Cognition, and Society)

673 Pages·2005·5.17 MB·English

by  Eirik G. Furubotn

PRAISEF OR THE FIRSTE DITION
"FuruboatnndR ichteIrn'tssi tutainodEn cso nomThieco ry
isa readabvlael,u abrleev ieaws,w elals a cleareexrp ositoifo n
institutthiaomtna sk et hee conommyo ree ffectIitv'eds.e finitely
recommendfeodra lglr aduastteu dents."
-ARMEN ALCHIAN,U niversoiftC ya liforLnoisaA ,n geles
"EirFiukr uboatnnd R udolRfi chthearv eg iveinn stitutional
economiac mso deronr ientawthiiocnhh a sa ttracstoemdeo ft he
tope conomifstrso ma rountdh ew orltdo f ocuosn t hei mportance
ofi nstituitnit ohneds e velopmoefne tc onomiscyss temasnd
organizatTihoenyas r.e t ob ec ommendefdo rt hes plendid
succeosfst heierf fort."
-JOHN M.T RAPANIT,u lanUen iversity
"Thiissa granwdo rka;n a dumbratoifot nh ee conomiocfst he
nexcte ntury."
-TIMOTHY P. ROTH,U niversoiftT ye xaast E lP aso
". ..a timelayn dm astersluyr veoyft heN IE.S eriosucsh olars
ina lalr eaosf e conomischso ulbde s urteo r eatdh icso mprehen­
sivweo rk."
-ANTONY DNES,U niversoifHt eyr tfordshire
Thisse riperso vidae fso rufmo rt heoretaincdea mlp irical
investigaotfis ooncsip ahle nomenIatp. r omotweosr ktsh at
focuosn t hei nteractaimoonnsgc ognitpirvoec essiensd,i vi­
duable haviaonrd,s ocioault comeIsti. se speciaolpleynt o
interdiscibpoloikntsah rayat r eg enuineilnyt egrative.
Editor: TimuKru ran
EditorBioaalr d: TyleCro wen Avner Greif
DiegGoa mbettaV iktor Vanberg
Titlients h eS eries
EiriGk. F uruboatnnd R udolRfi chteIrnt.s itutainodEn cso noTmhieco ry:
TheC onitbriuotonft hNee wI ntsitutEicoonnaolm Sieccosn,Ed d ition
TylerC owenM.a rkeatnsdC ultuVroail:cL eisbretvys P.o weirnt hLei voefs
MexicaAnm atPea inrst e
ThrainEng gertssIompne.f ercItn tsitu:tP ioosnsisilbiatnidLe ism its
ofR eform
VernoWn. R uttaSno. ciSacli eKnncoew leadngdEe c onoDmeivco epmlent:
AnI ntsitutDieosniaPglens pr ective
PhillJi.Np e lson Kaenndn etVh. G reenSe.i gnaGloiondegns :sS ociRaull es
andP ulbiCch oice
StepheKnn ackE,d itoDre.m oaccryG,o vnearncaen,dG rowth
OmarA zfaarn dC harlAe.sC adwelEld,i toMrsar. kte-uAgmetinng
GovnemrenTthe:I ntsitutFiooudnnaatli foornP sr opserity
RandalGl. HolcomFber.o Lmi bteyr Dteom ocyr:aT hceT ranfosrmatoifo n
AmericGaonv nemrent
DaviTd. Beito, GPoertdoenra, n dA lexandTearb arroEkd,i torTsh.e
VolunCtia:tryC y hoiCcoem,m uyn,ai ntdC ivSiolc iety
AlexandJe.Fr i elAdl. trulilsIytn icclaiTnheeBd e?h availSo criences,
EvolutiTohenoa,ryrya ndt hOer igoifRn esp criocity
DaviGd eorgPe.re feerncPeo lilounHto:w M arkeCtrse attheDe e seisr
WeD islike
JuliLa.nS imonT.h eG reBarte akotuhgarhn dIt Csa use
E.L .J onesG. rowRtehc ruirn:Eg conoCmhiac nigneW orlHdi story
RosemarLy.H opcrofRte.ig onIsnt,si tutainodAn gsr,a rCihaann igne
EuorpeaHni story
LeeJ .A lstoGna,r yD .L ibecapa,n dB ernarMduoe lleTrit.l eCso,n fliacntd,
LanUds e:T heD evlepomenotfP rpoertRyi gsha tndL anRdef ormo nt he
BraziAlmiaaznoF nro ntier
DanieBl. KleEidni,t oRrep. uattiSotnu:d iinte hsVe o lunEtlairyc itoaf tion
GooCdo nduct
(contoinln aupseatsg e)
Instituatnido ns
EconomTihce ory
TheC ontribuotfit ohne
New InstitutEicoonnaolm ics
SECONDE DITION
EIRIGK. F URUBOTANN DR UDOLFR ICHTER
THEU NIVRESITOYFM ICHAINGP RESS
AnAnr bor
ToE laibhse taFnledon rce,
whohspeew l aess sential
ttoh wer iotfti hnbigos o k
CopyriEgihrGti. k Furaunbdo tRnu dol19f98 2R,0i 0c5h ter
©
Alrli grhetsse rved
Firesdti ptuibolni 1s99h8e.d Seedciot2ni0d.o0 n5
Publiisnth hUeend i tSetdao tfAe mse rica by
ThUen iverMsiicthyiP grsoeasfn
Manufaicntt huUrene idtS etdao tfAe mse rica
® Prinotnae cdir de-ef paper
200280 0270 06 240035 2
No poaftr htpi usb limcaaybt eri eopnr oduced,
stoirner dea t rsiyesvtoaerlm ,t rainnas nmfyiro tmt ed
orb ya nmye nase,l ectmreocnhiacon,rio ctahles,re w,i
withtohwuert i tpteernm iosfts hipeou nb lisher.
A CIPc atarleocgfo ortrdh bioso iksa vailable
frotmh Ber itLiisbhr ary.
LibroafCr oyn sgsCra etaloging-Diant-aP ublication
FurubEoitrGnir,ku nidg1t,29v 3-
[N Ienuset utionEenngolkiosnho]m ik.
Instiatnuedtc ioonnotsmh ie:cot rhcyeo ntriobftu hnteei iwon ns titutional
econo/Em iircGis.k FuraunRdbu odtoRnli fc h-t2enred.d .
p.c m.( -Econocmoigcnsia,tn sidoo cni,e ty)
Inclbuidberlsai pohgriecfaeelrsa e nnidcn dex.
ISB0N- 4-70230(2p5b:-ak 6l. pk a.p er)
1I.n stitutionIaR.li cehRctuoednr,o1o, l2m9 f6i-cIsIT..i tIleIS.Ire .i es.
HB995F..81732 005
303-dc22 2004065837
Firesdti otiroing ipnuabllliiysnG he erdma asNne uIen stitutionbeyn okonomik
RudoRlifc hatnEedir r Fiukr ubTouitbnng.Me onh:Sr ib eecVker la1g99,6 .
Contents
Acknowlefdogtrmh Feein rtEssdt i tion
IX
Acknowlefdogtrmh Seecen otnsEd d ition
Xl
Praecfteot hFei rEsdti txiioini
Praecfteot hSece onEdd itxivoini
Chap1tI.en rt rodOubcestrovrayt1 i ons
1.S1mo.e B asiAcs sputmiaonnTdse rms2
12..T hSet raWnorgled
ofC otsleTsrnass act1i2o ns
13..T hIed eTayelpo ft hCel asls ica
LibeSrtaalt1 e4
14..T hIed eTayelpo fMa rkSeocti al1i7sm
15..C onsrtucotreS dp ontaOnredoeur1ss9 ?
16..T hWeo rokft h Ien viHsainbCdla en
BeA ccleera2t0e d
17..R atiIonncapolltm eesnse2 1
18..E nofrcem2e3n t
19..T hPeol itPiorccaels2 5s
1.o.1A genc2y7
1.11.In stitSuttaiboi2nl8ai lt y
1.2.1O nce wMiotFrheel ein3g0
1.3.1T hNee wI nstitEuctoinoonamanildc s
ModeIrnnsu ttoiintali3s4 m
1.4.1S moeN otoents h e HitshtOoelr dy of
InstitEucotnioiomcns4a0 l
1.5.1S uggeRsetaeddif ronC ghsa p1t 4e4r
Chap2t.Te rrsa anctCioosnt4 s7
21..Th Ceo nceopfTt rn aascti4o9n
2.2T.r ansaCcotsIitlosln:u starnAadtt tieomnpst s
atD enfiiti5o1n
2.3G.us esimtattihnSegi ze
ofT rsaanctCiotossn5 8
Contents
VI
2..4M oedliTnrngaas ctCiootsn:s
The Actisvaicttyi 6o4"n T"r an
2..5S moeN otoents h Dee vpemleoonftt h e
Tranisoanc-tLCiortsaett u7r2e
2..6S uggeRsetaeddif nogr s Ch2 a7p6t er
Chap3t.Ae bsrlo uPtreo tpyRe irtg:shO wnerosfh ip
PhysiOcbjacelt s79
31..Th Per opertAyp-pRarico:ghS hotmse
BasiCco necpt8s1
3..2P rotpyRe irg:hI tlslustarnAadtt tieomnpst s
atD efinit86i on
3.3P.r otpyie nPr hysOibjcceat:lTs hPer ivate
ProtpyIe surse9 6
3.4C.om moPno oRleo suersc1 01
3..5T hEem ergoefPn rcoetp yRe irgh1t61s
3..6T hEeco nomAinca loyfPs riostp yRe irtghs:
SmoeN otoents h Lei tteurra1e72
3..7S uggeRsetaeddif noCgrh sa p3t e1r23
Chap4t.Re erl aPtriovtpeyRe irtg:sh
ContraOcbtluiagl a1t53i ons
41..B asiPcr ilnecisp of
ContraOcbtluiagl a1t73i ons
4..2D vierTsyeep so f
ContraOcbtluiagl a1t4i1o ns
4.3S.mo eE lemeonfCt osn tTrhaecotforr myt he
EconoimsVti'esow ipn1t45
4.4T.h rTeyeep so fC ontTrhaecotr1 y6 1
4.5R.e sum1e88
4.6T.h Eec onoomfCi ocnst Lraawac ntd
ContraBcethuaavliS omoreN: o tes
ont hLei tteurra1e09
4..7S uggeRsetaeddif noCgrh sa p4t e1r79
Chap5t.Ce orn tTrhaecotr1 9y9
51..Ov ervoife Twty hepeso fC ontTrhaecotr y to
BeD iscu2s0s1 ed
5..2M anagTehreioaorlfty hF ei rmT:h e
Expen-sPeerreefMnocdee 2l0 3
5.3T.h Per incipMaoled-lA:g ent
MorHaalz a2r0d6
5.4T.h Per incipMaoled-lA:g ent
AdveSreslteei oc2n2 2
Contents
VB
5.5I.m plCioctnirta c2t4s6
5.6T.hI en comCpoltnertaMeco td e2l51
5.7S.e- lEfonrfcAignrge em2e5n8t s
5.8T.hI en suttoiint-naE-sq-uailmi-b-orafGi-aume
Apparco:h NAo t2e6 5
5.9L.o okBiacnkg2 67
5.1B0bi.l iroapgNhoitcoe nFs ormal
ContTrhaecot2r 7y1
51.1S.u ggeRsetaeddif ronC ghsa p5t 2e8r8
Chap6t.Te hrNe e wI nstitEuctoinoonAmapillpci ste od
MarkFeitrmsas,n, td h Set a:Gt eeneral
Remar2k91s
61..Th Eel emteaRrnuyel so fP rai vate
OwnerEschoinpo 2m9y2
6.2G.e neRreamla ornkO sr ganoin:zTs ahtei
Firtmh,Me a rkaentd, S tthae2t 9e6
6.3A. B riGeufi tdote h Lei rtaetounrO er der,
Organoinzasan,tSd ioc iNaelt wor30k5s
6.4S.u ggeRsetaeddif ronC ghsa p6t 3er11
Chap7t.Te hrNe e wI nstitEuctoinoonmailc s
oft hMea rk3e1t 3
71..Th Mea rkaesOt r ganiz3a1t4i on
7.2O.nP ircRei gid3i1t6y
7.3M.a rkOertg aniazsaaR teisounl t
ofM arkCeootp era3t1i9o n
7.4S.mo eV ieowfsN e ositniotnuatloiins ts
MarkOertg aniz3a2t3i on
7.5M.a rekt:Cs onucsliaonnOd u tlo3o5k0
7.6A. B riGeufi tdote h Lei rtaeture
onM arkOertg aniz3a5t2i on
7.7S.u ggeRsetaeddif ronC ghsa p7t e35r8
Chap8t.Te hrNe e wI nstitEuctoinoonmailc s
oft he F3i61r m
81..Th Oer thoNdeooxc laFsisri3mc6 1a l
8.2T.hI en centtoIi nvtee g3r7a0t e
8.3T.hL ei moiftI sn tegr3a8t0i on
8.4O.w nerasnhCdio pn tr38o6l
8.5I.n stitMuotdieiolntns haT elr adittihoen of
NeocllaT shseiocrayF iormf4 01t he
8.6T.hT er adiStoivoFinieartl4m 13
8.7T.h Seoc iaLlaibsotr -MFainrma4 g21e d
Contents
Vll1
8..8C oedtermina4t36i on
8.9A. C omparoifSs mooeFn o rmaMlo deolfs
the F4i51r m
81.0T.h e NIenws titEuctoinoonomaftil hc es
FirmF:oe rrunannedr sSF tierps4ts57
81.1T.h e New InEsctointouomtftii hcoesn al
FirmS:u mmaryM aaiLnnid tt eurrae
byeonCdo as4e5 9
8.1S2u.g geRsetaeddif noCrgh sa p8t e46r8
Chap9t.Te hre NIenws titEucotnioiomcnsa l
oft hSet a4t7e1
91..A SimpNleeo claTshseiocrayl
oft hSet a4t7e2
9..2T hReo loefP oliItnisucttoaiinlts 4 76
9..3P otliicMaarlk e4t8s2
9.4I.n ternRaetliaotn4ia8ol5n s
9..5A BriGeufi tdote h Lei tteurorane the
Ecnooimcosft hSet aatned
InternRaetliaotn4ia9ol3n s
9..6S uggeRsetaeddif nogr s C9h a4p9t8e r
Chap1t.0eF ru tuDreevp emleoonftt hNee w
InstitEuctoinoonm5ai01lc s
1.0.1I nsttiiotnuaalsEi xstme nded
NeolcassTihceaol5r0 y5
1.0.2T hIen iAtpiparlo Raeccho enrsei5dd0 7
1.0.3T hBea siosfa N ewP arad5i3g3m
1.0.4M oedrInn suttoiintaslmTi:h Oep ptourneist i
froP rosgsr5 e48
Glorsys5 a55
Refeenercs5 71
AuthIonrd e6x31
SuebcjItn de6x4 3
Acknowledgmenftosrt heF irsEtd ition
Numerionudsi vaindidun aislttousnt hsia vaess stioeudwr o rokv etrhy ee ars,
anwde s holuiltkdooe f f reo usri nctehrafenrok t sh eir gceonnetrroiubust ions
oft imaenr deo suerscF.i rtshUten, i veorfSs aiatryil tsabo n emd e ntiTohnee d.
univedressipatdi yifit,fce u blutd gestiatorunyha, ta is gciovnsestnies nutp port
to Ctenhtefe rort hSet uodfty h Nee wI nstitEuctoinooanmnaihdlca ss idtosn e
betts oa dvaonucprer omgsrT.ah iasss stiahnacbsee ecnr ucbieuacslate h e
Centleotrce,aad tt h uen ivearndsdii rteyb cytt heaedu ot rhhsa,ps r ovase tda ble
basfroeo udri versiee Isam.cp toirvtiatnhta assl ubspeope roner cte fiorvme d
thMei niosftE edru caotfti hoen SatahrPelr aensdio,df e ntth e Landeszen­
tralibmaS naka r(llaanRtdhe eri nPlafalnazdn,,d SaatrhDleea untds)c,h e
Forschungsfg,tt ehmVeeol iknsswcaFhgoaeunn datthTiehyo sn,sF eonu nda­
tiotnhS,et tiefrvefrriibd ainDede utsWcishsee nafsttch,hJe a mLe.sW est
Chaaittr h Uen iveorfTs eixtaaytAs r linagntdo Pntr,hi evE anttees rpeRr ei­
searcha TtC eexnAat&seM rU niveTrhseiistneyd .i vaindodur aglasn izations
helpteomd a kpeo isbstlhete w elivnet ernatioannatdlh sese evmeinn ars,
summsecrh ootlhsNe e owIn n stitEucotnioiomcntsah tlah tCe e ntheaarsr ­
rangWeidt.h toehustse c hrollayac teisva,in twdii thtohuceto t ninuaisn­g
sistoafGn ecoeSr ige bpeubclki,so hfe Jtruoh re nofaIs nlt intaultT iehao­nd
oretEiccoanlo( mJIiTctEhsp)e r, ee nsbto owko ulnde vhearv ceo mien to
exinsctee.
Depsittheee x istoefmn ocdeec mo mmunictaetcihonnpiseqo runseasl,
meetionftg haseu thaonrpdse rioofld oscc aoulat howreirnuegn avbolied.a
Fotrnuatesluycn,he edaesdsi oactwiaomsna dpeos sibblyte hfi en anscuipa­l
porotft hDee utsFcohreusn csghgemehiatnfa sncdt hTehy ssSetnti uf.n g
Graenntasb ElierFdiu kr utboco toennwr fi tihn fluentieaclno oGmeiarstmt asn
KonstJaennTzar,,ia enreds,l e wh.Se irmerilltyah,He o ovIenrs tiatStu ttaino­n
frodU nivearnstdih Dteey pr atmoenfEt c onoamtti hcUesn iveorfMs iicthyi ­
ga(nA nAnr boprr)o vsiedveedvr iaslia tpipnogi nftromR eundtoRsli fc hter,
whicahm,on ogt htehris np,ge rmihtittmoev di ssicthr osalvt aa ripoouisin nt s
ThJeou rnoafIl n stitutTihoenoarleE tcaioncndao lm iecdsi btyeR du doRlifc hftoremr 7 18t9 o
was
1994.