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When Order Affects Performance: Culture, Behavioral Spillovers, and Institutional Path Dependence

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  • BEDNAR, JENNA
  • PAGE, SCOTT E.

Abstract

Evidence suggests that the cultural context influences the performance of laws, policies, and political institutions. Descriptive accounts reveal that outcomes and behaviors often depend on the array of historical institutions. This article presents a multi-institutional framework that can account for those findings through path-dependent behavioral spillovers. Individuals learn equilibrium behaviors when interacting in a new institutional setting. Initially, some individuals choose behaviors that align with their behaviors in similar extant institutions, creating a cultural context that can lead to inefficient outcomes. The article shows how avoiding path dependence requires sequencing (or designing) institutions to maintain behavioral diversity. Optimal sequencing thus requires positioning institutions with clear incentives early in the sequence as well as avoiding strong punishments that can stifle attempts to break established behavioral patterns.

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  • Bednar, Jenna & Page, Scott E., 2018. "When Order Affects Performance: Culture, Behavioral Spillovers, and Institutional Path Dependence," American Political Science Review, Cambridge University Press, vol. 112(1), pages 82-98, February.
    • Handle: RePEc:cup:apsrev:v:112:y:2018:i:01:p:82-98_00
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    Cited by:

    1. Robbert Maseland & Rok Spruk, 2023. "The benefits of US statehood: an analysis of the growth effects of joining the USA," Cliometrica, Journal of Historical Economics and Econometric History, Association Française de Cliométrie (AFC), vol. 17(1), pages 49-89, January.
    2. Sean Gailmard, 2020. "Game theory and the study of American political development," Public Choice, Springer, vol. 185(3), pages 335-357, December.
    3. Gregory W. Caskey & Ilia Murtazashvili, 2022. "The predatory state and coercive assimilation: The case of the Uyghurs in Xinjiang," Public Choice, Springer, vol. 191(1), pages 217-235, April.
    4. Eszter Kazinczy, 2021. "The two distinct systems of socialist Albania and SFR Yugoslavia: A comparative analysis using Kornai?s ?Main Line of Causality?," HISTORY OF ECONOMIC THOUGHT AND POLICY, FrancoAngeli Editore, vol. 10(2), pages 31-51.
    5. Barisik, Salih & Ergen, Kubilay, 2020. "Alternative Variables for Geography and Institutional Structure: European Colonies and an Evaluation of sub-Saharan African Countries," Asian Journal of Applied Economics, Kasetsart University, Center for Applied Economics Research, vol. 27(1).
    6. Gerlinde Fellner-Röhling & Sabine Kröger & Erika Seki, 2021. "Information Regime Changes and Path Dependence - An Experimental Analysis of Public Goods Contributions in Heterogeneous Groups," CIRANO Working Papers 2021s-13, CIRANO.
    7. Steven Jacob Bosworth & Simon Bartke, 2019. "Cross-task spillovers in workplace teams: Motivation vs. learning," Economics Discussion Papers em-dp2019-15, Department of Economics, University of Reading.
    8. Tracy Xiao Liu & Jenna Bednar & Yan Chen & Scott Page, 2019. "Directional behavioral spillover and cognitive load effects in multiple repeated games," Experimental Economics, Springer;Economic Science Association, vol. 22(3), pages 705-734, September.

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