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Mechanisms of Endogenous Institutional Change

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  • Masahiko Aoki

    (Stanford University)

Abstract

This paper proposes an analytical-cum-conceptual framework for understanding the nature of institutions as well as their changes. In doing so, it attempts to achieve two things: First, it proposes a way to reconcile an equilibrium (endogenous) view of institutions with the notion of agents’ bounded rationality by introducing such concepts as a summary representation of equilibrium as common knowledge of agents. Second, it specifies some generic mechanisms of institutional coherence and change -- overlapping social embededdness, Schumpeterian innovation in bundling games and dynamic institutional complementarities -- useful for understanding the dynamic interactions of economic, political, social and organizational factors.

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  • Masahiko Aoki, 2006. "Mechanisms of Endogenous Institutional Change," Discussion Papers 05-013, Stanford Institute for Economic Policy Research.
    • Handle: RePEc:sip:dpaper:05-013
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    Cited by:

    1. Kapoguzov Evgeny (Капогузов Е.А.), 2020. "The Effectiveness Of Institutional Changes Of Imported Institutions In Public Administration [Эффективность Институциональных Изменений Импортируемых Институтов В Государственном Управлении]," State and Municipal Management Scholar Notes, Russian Presidential Academy of National Economy and Public Administration, vol. 2, pages 27-33.
    2. Masahiko Aoki, 2006. "Whither Japan's Corporate Governance?," Discussion Papers 05-014, Stanford Institute for Economic Policy Research.

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