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Competition among Institutions: Evolution within Constraints

In: Competition among Institutions

Author

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  • Wolfgang Kerber
  • Viktor Vanberg

Abstract

Competition among institutions is a wide topic with many different aspects and problems to discuss. The purpose of this paper is to outline an evolutionary approach to the process of competition among institutions. For a more thorough analysis we will draw a parallel between ordinary market competition and the subject of our interest, competition in the realm of institutions. We shall focus, in particular, on two issues. First, the role of the competitive process as a knowledge-creating process. In this respect, we will show that institutional competition leads to the creation and spreading of new institutions. Secondly, we ask what inferences, if any, can be drawn from the nature of this process of competition among institutions to the desirability of its outcomes. Here we will argue that in the same way that competition on ordinary markets has to take place under certain rules, which ensure the desirability of these competitive processes, competition among institutions also requires a framework of rules channelling the competitive processes into desirable directions. Before we begin our discussion on these issues, however, some clarifying comments are in order to narrow down what we mean by ‘evolutionary approach’ and ‘competition among institutions’.

Suggested Citation

  • Wolfgang Kerber & Viktor Vanberg, 1995. "Competition among Institutions: Evolution within Constraints," Palgrave Macmillan Books, in: Lüder Gerken (ed.), Competition among Institutions, chapter 2, pages 35-64, Palgrave Macmillan.
    • Handle: RePEc:pal:palchp:978-1-349-24262-7_2
    DOI: 10.1007/9781349242627_2
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    Cited by:

    1. Roland Vaubel, 1999. "Enforcing Competition Among Governments: Theory and Application to the European Union," Constitutional Political Economy, Springer, vol. 10(4), pages 327-338, November.
    2. Kathrin Isele, 2001. "Institutioneller Wettbewerb und neoklassische Modelle," Volkswirtschaftliche Diskussionsbeiträge 43, Universität Potsdam, Wirtschafts- und Sozialwissenschaftliche Fakultät.
    3. Berthold Norbert & Neumann Michael, 2004. "Ballungsprozesse im Standortwettbewerb der deutschen Bundesländer," ORDO. Jahrbuch für die Ordnung von Wirtschaft und Gesellschaft, De Gruyter, vol. 55(1), pages 169-190, January.
    4. Helmut Karl & Omar Ranné, 1997. "European environmental policy between decentralisation and uniformity," Intereconomics: Review of European Economic Policy, Springer;ZBW - Leibniz Information Centre for Economics;Centre for European Policy Studies (CEPS), vol. 32(4), pages 159-169, July.
    5. Kathrin Isele, 2003. "Fusionskontrolle im Standortwettbewerb," Volkswirtschaftliche Diskussionsbeiträge 51, Universität Potsdam, Wirtschafts- und Sozialwissenschaftliche Fakultät.
    6. Brandi, Clara & Wohlgemuth, Michael, 2006. "Strategies of Flexible Integration and Enlargement of the European Union: a Club-theoretical and Constitutional Economics Perspective," Freiburg Discussion Papers on Constitutional Economics 06/7, Walter Eucken Institut e.V..
    7. Daniel Strecker, 1999. "Forschungs- und Technologiepolitik im Standortwettbewerb," Volkswirtschaftliche Diskussionsbeiträge 29, Universität Potsdam, Wirtschafts- und Sozialwissenschaftliche Fakultät.

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