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Rationality, Entrepreneurship and Institutional Evolution

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  • Richard H. Day

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[eng] The concepts of bounded rationality and related modes of adaptive behavior help explain why specific market mechanisms and institutions are needed to mediate exchange ; why the economy must evolve out of equilibrium ; why democratic capitalism changes so rapidly ; why socialist systems tend to atrophe and why non-market institutions are nee­ded to buffer changes and mitigate the social cost of rapid economic development. These notes sketch the arguments behind these assertions. [fre] Les concepts de rationalité limitée et les modes de comportements adaptatifs qui y sont associés aident à expliquer pourquoi des mécanismes de marché et des institutions spécifiques sont nécessaires pour « médiatiser » les échanges ; pourquoi l'économie peut évoluer hors de l'équilibre ; pourquoi le capitalisme démocratique change aussi vite ; pourquoi les systèmes socialistes tendent à s'atrophier et pourquoi des institutions autres que les marchés sont requises pour convertir les changements et atténuer le coût social d'un développement économique rapide. Ces notes établissent les arguments qui sont derrière ces asser­tions.

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  • Richard H. Day, 1995. "Rationality, Entrepreneurship and Institutional Evolution," Revue Économique, Programme National Persée, vol. 46(6), pages 1473-1485.
    • Handle: RePEc:prs:reveco:reco_0035-2764_1995_num_46_6_409746
    DOI: 10.3406/reco.1995.409746
    Note: DOI:10.3406/reco.1995.409746
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    References listed on IDEAS

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    1. Pelikan, Pavel, 1989. "Evolution, economic competence, and the market for corporate control," Journal of Economic Behavior & Organization, Elsevier, vol. 12(3), pages 279-303, December.
    2. Day, Richard H., 1984. "Disequilibrium economic dynamics : A post-Schumpeterian contribution," Journal of Economic Behavior & Organization, Elsevier, vol. 5(1), pages 57-76, March.
    3. Pelikan, Pavel, 1989. "Evolution, Economic Competence, and the Market for Corporate Control," Working Paper Series 215, Research Institute of Industrial Economics.
    4. Winston, Gordon C., 1989. "Imperfectly rational choice : Rationality as the result of a costly activity," Journal of Economic Behavior & Organization, Elsevier, vol. 12(1), pages 67-86, August.
    5. Eliasson, Gunnar, 1988. "The Firm as a Competent Team," Working Paper Series 207, Research Institute of Industrial Economics, revised Feb 1990.
    6. Richard H. Day & E. Herbert Tinney, 1968. "How to Co-operate in Business without Really Trying: A Learning Model of Decentralized Decision Making," Journal of Political Economy, University of Chicago Press, vol. 76(4), pages 583-583.
    7. Conlisk, John, 1980. "Costly optimizers versus cheap imitators," Journal of Economic Behavior & Organization, Elsevier, vol. 1(3), pages 275-293, September.
    8. Eliasson, Gunnar, 1990. "The firm as a competent team," Journal of Economic Behavior & Organization, Elsevier, vol. 13(3), pages 275-298, June.
    9. Heiner, Ronald A., 1988. "Imperfect decisions in organizations : Toward a theory of internal structure," Journal of Economic Behavior & Organization, Elsevier, vol. 9(1), pages 25-44, January.
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    Cited by:

    1. Pittnauer, Sabine & Hohnisch, Martin, 2023. "Observing the creation of new knowledge in the economics laboratory—Do participants discover how to learn from outcome feedback in a dynamic decision problem?," Journal of Economic Behavior & Organization, Elsevier, vol. 215(C), pages 382-405.
    2. Nugent, Jeffrey B., 2023. "A new institutional perspective on business associations: Filling a gap between firms and states in the dynamic analysis of Richard Day," Journal of Economic Behavior & Organization, Elsevier, vol. 211(C), pages 49-59.
    3. Yefimov, Vladimir, 1997. "Approche institutionnelle de l'analyse de la transition (le cas de l'agriculture du Nord-Kazakhstan) [Institutional approach for transition analysis (the case of Northern Kazakhstan's agriculture)]," MPRA Paper 54588, University Library of Munich, Germany.

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