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Cognitive Inertia as a Fundamental Cause of Institutional Inertia

In: Institutional Inertia

Author

Listed:
  • Ali Hussein Samadi

    (Shiraz University)

  • Alireza Raanaei

    (Shiraz University)

  • Mojtaba Panahi

    (Shiraz University)

Abstract

Various reasons have been stated to explain the formation of institutional inertia. The best factor to explain this phenomenon is the factor that plays a unique role in the formation and development of institutions. Based on this, cognitive factors can be considered the basic factors of creating institutions at the fundamental level. However, in the institutional economics literature, less attention has been paid to these factors. According to the relationship between the institution and cognitive factors, it may be argued that cognitive inertia is the cause of the formation of institutional inertia. Therefore, cognitive factors can be seen as the most important formation of institutions. The main idea of this chapter is based on the synthesis of institutional economics and behavioral economics. Therefore, in this chapter, the question of how cognitive inertia leads to institutional inertia is studied.

Suggested Citation

  • Ali Hussein Samadi & Alireza Raanaei & Mojtaba Panahi, 2024. "Cognitive Inertia as a Fundamental Cause of Institutional Inertia," Contributions to Economics, in: Nezameddin Faghih & Ali Hussein Samadi (ed.), Institutional Inertia, pages 155-172, Springer.
    • Handle: RePEc:spr:conchp:978-3-031-51175-2_7
    DOI: 10.1007/978-3-031-51175-2_7
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