Institutions are humanly devised structures of rules and norms that shape and constrain individual behavior.
All definitions of institutions generally entail that there is a level of persistence and continuity.
Laws, rules, social conventions and norms are all examples of institutions.
Institutions vary in their level of formality and informality.
Institutions are a principal object of study in
social sciences
Social science is one of the branches of science, devoted to the study of societies and the relationships among individuals within those societies. The term was formerly used to refer to the field of sociology, the original "science of soci ...
such as
political science
Political science is the scientific study of politics. It is a social science dealing with systems of governance and power, and the analysis of political activities, political thought, political behavior, and associated constitutions and la ...
,
anthropology
Anthropology is the scientific study of humanity, concerned with human behavior, human biology, cultures, societies, and linguistics, in both the present and past, including past human species. Social anthropology studies patterns of behavi ...
,
economics
Economics () is the social science that studies the Production (economics), production, distribution (economics), distribution, and Consumption (economics), consumption of goods and services.
Economics focuses on the behaviour and intera ...
, and
sociology
Sociology is a social science that focuses on society, human social behavior, patterns of Interpersonal ties, social relationships, social interaction, and aspects of culture associated with everyday life. It uses various methods of Empirical ...
(the latter described by
Émile Durkheim
David Émile Durkheim ( or ; 15 April 1858 – 15 November 1917) was a French sociologist. Durkheim formally established the academic discipline of sociology and is commonly cited as one of the principal architects of modern social science, al ...
as the "science of institutions, their genesis and their functioning"). Primary or meta-institutions are institutions such as the
family
Family (from la, familia) is a Social group, group of people related either by consanguinity (by recognized birth) or Affinity (law), affinity (by marriage or other relationship). The purpose of the family is to maintain the well-being of its ...
or
money
Money is any item or verifiable record that is generally accepted as payment for goods and services and repayment of debts, such as taxes, in a particular country or socio-economic context. The primary functions which distinguish money are as ...
that are broad enough to encompass sets of related institutions. Institutions are also a central concern for
law
Law is a set of rules that are created and are enforceable by social or governmental institutions to regulate behavior,Robertson, ''Crimes against humanity'', 90. with its precise definition a matter of longstanding debate. It has been vario ...
, the formal mechanism for political rule-making and enforcement. Historians study and document the founding, growth, decay and development of institutions as part of political, economic and cultural history.
Definition
There are a variety of definitions of institutions. These definitions entail varying levels of formality and organizational complexity.
The most expansive definitions may include informal but regularized practices, such as handshakes, whereas the most narrow definitions may only include institutions that are highly formalized (e.g. have specified laws, rules and complex organizational structures).
According to
Wolfgang Streeck
Wolfgang Streeck (; born 27 October 1946) is a German economic sociologist and emeritus director of the Max Planck Institute for the Study of Societies in Cologne.
Early life
Streeck was born "just outside Münster", the son of refugees – e ...
and
Kathleen Thelen
Kathleen Thelen is an American political scientist specializing in comparative politics. She is the Ford Professor of Political Science at the Massachusetts Institute of Technology (MIT), a permanent external member of the Max Planck Institute f ...
, institutions are in the most general sense "building blocks of social order: they represent socially sanctioned, that is, collectively enforced expectations with respect to the behavior of specific categories of actors or to the performance of certain activities. Typically, they involve mutually related rights and obligations for actors."
Sociologists and anthropologists have expansive definitions of institutions that include informal institutions. Political scientists have sometimes defined institutions in more formal ways where third parties must reliably and predictably enforce the rules governing the transactions of first and second parties.
One prominent
Rational Choice Institutionalist definition of institutions is provided by
Jack Knight who defines institutions as entailing "a set of rules that structure social interactions in particular ways" and that "knowledge of these rules must be shared by the members of the relevant community or society."
Definitions by Knight and Randall Calvert exclude purely private idiosyncrasies and conventions.
Douglass North
Douglass Cecil North (November 5, 1920 – November 23, 2015) was an American economist known for his work in economic history. He was the co-recipient (with Robert William Fogel) of the 1993 Nobel Memorial Prize in Economic Sciences. In the wor ...
defines institutions as "rules of the game in a society" and "humanly devised constraints that structure political, economic and social interactions."
Randall Calvert defines institution as "an equilibrium of behavior in an underlying game."
This means that "it must be rational for nearly every individual to almost always adhere to the behavior prescriptions of the institution, given that nearly all other individuals are doing so."
Robert Keohane
Robert Owen Keohane (born October 3, 1941) is an American academic working within the fields of international relations and international political economy. Following the publication of his influential book ''After Hegemony'' (1984), he has beco ...
defined institutions as "persistent and connected sets of rules (formal or informal) that prescribe behavioral roles, constrain activity, and shape expectations."
Samuel P. Huntington defined institutions as "stable, valued, recurring patterns of behavior." I
Avner Greif
Avner Greif (; born 1955) is an economics professor at Stanford University, Stanford, California. He holds a chaired professorship as Bowman Family Professor in the Humanities and Sciences.
Greif received his PhD in Economics at Northwestern Un ...
and
David Laitin
David D. Laitin (born in 1945) is the James T. Watkins IV and Elise V. Watkins Professor of Political Science in the School of Humanities and Science at Stanford University. He is a comparative politics scholar who has written works on civil war, ...
define institutions "as a system of human-made, nonphysical elements – norms, beliefs, organizations, and rules – exogenous to each individual whose behavior it influences that generates behavioral regularities."
Additionally, they specify that organizations "are institutional elements that influence the set of beliefs and norms that can be self-enforcing in the transaction under consideration. Rules are behavioral instructions that facilitate individuals with the cognitive task of choosing behavior by defining the situation and coordinating behavior."
All definitions of institutions generally entail that there is a level of persistence and continuity.
Laws, rules, social conventions and norms are all examples of institutions.
Organizations
An organization or organisation (Commonwealth English; see spelling differences), is an entity—such as a company, an institution, or an association—comprising one or more people and having a particular purpose.
The word is derived from ...
and institutions can be synonymous, but Jack Knight writes that organizations are a narrow version of institutions or represent a cluster of institutions; the two are distinct in the sense that organizations ''contain'' internal institutions (that govern interactions between the members of the organizations).
An informal institution tends to have socially shared rules, which are unwritten and yet are often known by all inhabitants of a certain country, as such they are often referred to as being an inherent part of the culture of a given country. Informal practices are often referred to as "cultural", for example clientelism or corruption is sometimes stated as a part of the political culture in a certain place, but an informal institution itself is not cultural, it may be shaped by culture or behaviour of a given political landscape, but they should be looked at in the same way as formal institutions to understand their role in a given country. The relationship between formal and informal institutions is often closely aligned and informal institutions step in to prop up inefficient institutions. However, because they do not have a centre, which directs and coordinates their actions, changing informal institutions is a slow and lengthy process.
According to
Geoffrey M. Hodgson, it is misleading to say that an institution is a form of behavior. Instead, Hodgson states that institutions are "integrated systems of rules that structure social interactions."
Examples
Examples of institutions include:
*
Family
Family (from la, familia) is a Social group, group of people related either by consanguinity (by recognized birth) or Affinity (law), affinity (by marriage or other relationship). The purpose of the family is to maintain the well-being of its ...
: The family is the center of the child's life. The family teaches children cultural values and attitudes about themselves and others – see
sociology of the family
Sociology of the family is a subfield of the subject of sociology, in which researchers and academics study family structure as a social institution and unit of socialization from various sociological perspectives. It can be seen as an example of ...
. Children learn continuously from their environment. Children also become aware of class at a very early age and assign different values to each class accordingly.
*
Religion
Religion is usually defined as a social- cultural system of designated behaviors and practices, morals, beliefs, worldviews, texts, sanctified places, prophecies, ethics, or organizations, that generally relates humanity to supernatural, ...
: Some religion is like an ethnic or cultural category, making it less likely for the individuals to break from religious affiliations and be more socialized in this setting. Parental religious participation is the most influential part of religious socialization—more so than religious peers or religious beliefs. See
sociology of religion
Sociology of religion is the study of the beliefs, practices and organizational forms of religion using the tools and methods of the discipline of sociology. This objective investigation may include the use both of quantitative methods (surveys, ...
and
civil religion
Civil religion, also referred to as a civic religion, is the implicit religious values of a nation, as expressed through public rituals, symbols (such as the national flag), and ceremonies on sacred days and at sacred places (such as monuments, bat ...
.
*
Peer group
In sociology, a peer group is both a social group and a Primary and secondary groups, primary group of people who have similar interests (homophily), age, background, or social status. The members of this group are likely to influence the person's ...
s: A peer group is a social group whose members have interests, social positions and age in common. This is where children can escape supervision and learn to form relationships on their own. The influence of the peer group typically peaks during adolescence however peer groups generally only affect short term interests unlike the family which has long term influence.
*
Economic system
An economic system, or economic order, is a system of Production (economics), production, resource allocation and Distribution (economics), distribution of goods and services within a society or a given geographic area. It includes the combinati ...
s: Economic systems dictate "acceptable alternatives for consumption", "social values of consumption alternatives", the "establishment of dominant values", and "the nature of involvement in consumption".
*
Legal system
The contemporary national legal systems are generally based on one of four basic systems: civil law, common law, statutory law, religious law or combinations of these. However, the legal system of each country is shaped by its unique history an ...
s: Children are pressured from both parents and peers to conform and obey certain laws or norms of the group/community. Parents’ attitudes toward legal systems influence children's views as to what is legally acceptable. For example, children whose parents are continually in jail are more accepting of incarceration. See
jurisprudence
Jurisprudence, or legal theory, is the theoretical study of the propriety of law. Scholars of jurisprudence seek to explain the nature of law in its most general form and they also seek to achieve a deeper understanding of legal reasoning a ...
,
philosophy of law
Philosophy of law is a branch of philosophy that examines the nature of law and law's relationship to other systems of norms, especially ethics and political philosophy. It asks questions like "What is law?", "What are the criteria for legal vali ...
,
sociology of law
The sociology of law (legal sociology, or law and society) is often described as a sub-discipline of sociology or an interdisciplinary approach within legal studies. Some see sociology of law as belonging "necessarily" to the field of sociology, ...
.
*
Penal system
A prison, also known as a jail, gaol (dated, standard English, Australian, and historically in Canada), penitentiary (American English and Canadian English), detention center (or detention centre outside the US), correction center, correcti ...
s: The penal systems acts upon prisoners and the guards. Prison is a separate environment from that of normal society; prisoners and guards form their own communities and create their own social norms. Guards serve as "social control agents" who discipline and provide security.
From the view of the prisoners, the communities can be oppressive and domineering, causing feelings of defiance and contempt towards the guards.
Because of the change in societies, prisoners experience loneliness, a lack of emotional relationships, a decrease in identity and "lack of security and autonomy". Both the inmates and the guards feel tense, fearful, and defensive, which creates an uneasy atmosphere within the community.
See
sociology of punishment
The sociology of punishment seeks to understand why and how we punish; the ''general justifying aim of punishment'' and the ''principle of distribution''. Punishment involves the intentional infliction of pain and/or the deprivation of rights and ...
.
*
Language
Language is a structured system of communication. The structure of a language is its grammar and the free components are its vocabulary. Languages are the primary means by which humans communicate, and may be conveyed through a variety of met ...
: People learn to socialize differently depending on the specific language and culture in which they live.
[Ochs, Elinor. 1988. ]
Culture and language development: Language acquisition and language socialization in a Samoan village
'. Cambridge: Cambridge University Press. Ochs, Elinor, and Bambi Schieffelin. 1984. Language Acquisition and Socialization: Three Developmental Stories and Their Implications. In ''Culture Theory: Essays on Mind, Self, and Emotion''. R. Shweder and R.A. LeVine, eds. pp. 276–320. New York: Cambridge University. Schieffelin, Bambi B. 1990. ''The Give and Take of Everyday Life: Language Socialization of Kaluli Children''. Cambridge: Cambridge University Press. A specific example of this is code switching. This is where immigrant children learn to behave in accordance with the languages used in their lives: separate languages at home and in peer groups (mainly in educational settings). Depending on the language and situation at any given time, people will socialize differently.
See
linguistics
Linguistics is the scientific study of human language. It is called a scientific study because it entails a comprehensive, systematic, objective, and precise analysis of all aspects of language, particularly its nature and structure. Linguis ...
,
sociolinguistics
Sociolinguistics is the descriptive study of the effect of any or all aspects of society, including cultural Norm (sociology), norms, expectations, and context (language use), context, on the way language is used, and society's effect on languag ...
,
sociology of language
Sociology of language is the study of the relations between language and society. It is closely related to the field of sociolinguistics, which focuses on the effect of society on language. One of its longest and most prolific practitioners was Jo ...
.
*
Mass media
Mass media refers to a diverse array of media technologies that reach a large audience via mass communication. The technologies through which this communication takes place include a variety of outlets.
Broadcast media transmit information ...
: The mass media are the means for delivering impersonal communications directed to a vast audience. The term ''media'' comes from Latin meaning, "middle", suggesting that the media's function is to connect people. The media can teach norms and values by way of representing symbolic reward and punishment for different kinds of behavior. Mass media has enormous effects on our attitudes and behavior, notably in regards to aggression.
[Macionis, John J., and Linda M. Gerber. Sociology. Toronto: Pearson Canada, 2011. Print.] See
media studies
Media studies is a discipline and field of study that deals with the content, history, and effects of various media; in particular, the mass media. Media Studies may draw on traditions from both the social sciences and the humanities, but mostly ...
.
*
Education
Education is a purposeful activity directed at achieving certain aims, such as transmitting knowledge or fostering skills and character traits. These aims may include the development of understanding, rationality, kindness, and honesty. Va ...
al institutions –
school
A school is an educational institution designed to provide learning spaces and learning environments for the teaching of students under the direction of teachers. Most countries have systems of formal education, which is sometimes compuls ...
s (
preschool
A preschool, also known as nursery school, pre-primary school, or play school or creche, is an educational establishment or learning space offering early childhood education to children before they begin compulsory education at primary school ...
,
primary/elementary,
secondary
Secondary may refer to: Science and nature
* Secondary emission, of particles
** Secondary electrons, electrons generated as ionization products
* The secondary winding, or the electrical or electronic circuit connected to the secondary winding i ...
, and
post-secondary/higher –see
sociology of education
The sociology of education is the study of how public institutions and individual experiences affect education and its outcomes. It is mostly concerned with the public schooling systems of modern industrial societies, including the expansion of ...
)
*
Research
Research is "creativity, creative and systematic work undertaken to increase the stock of knowledge". It involves the collection, organization and analysis of evidence to increase understanding of a topic, characterized by a particular att ...
community –
academia
An academy (Attic Greek: Ἀκαδήμεια; Koine Greek Ἀκαδημία) is an institution of secondary education, secondary or tertiary education, tertiary higher education, higher learning (and generally also research or honorary membershi ...
and
universities
A university () is an institution of higher (or tertiary) education and research which awards academic degrees in several academic disciplines. Universities typically offer both undergraduate and postgraduate programs. In the United States, t ...
;
research institute
A research institute, research centre, research center or research organization, is an establishment founded for doing research. Research institutes may specialize in basic research or may be oriented to applied research. Although the term often i ...
s – see
sociology of science
The sociology of scientific knowledge (SSK) is the study of science as a social activity, especially dealing with "the social conditions and effects of science, and with the social structures and processes of scientific activity." The sociolog ...
*
Medicine
Medicine is the science and practice of caring for a patient, managing the diagnosis, prognosis, prevention, treatment, palliation of their injury or disease, and promoting their health. Medicine encompasses a variety of health care pract ...
–
hospital
A hospital is a health care institution providing patient treatment with specialized health science and auxiliary healthcare staff and medical equipment. The best-known type of hospital is the general hospital, which typically has an emerge ...
s and other
health care
Health care or healthcare is the improvement of health via the prevention, diagnosis, treatment, amelioration or cure of disease, illness, injury, and other physical and mental impairments in people. Health care is delivered by health profe ...
institutions – see
sociology of health and illness
The sociology of health and illness, sociology of health and wellness, or health sociology examines the interaction between society and health. As a field of study it is interested in all aspects of life, including contemporary as well as histor ...
,
medical sociology
Medical sociology is the sociological analysis of medical organizations and institutions; the production of knowledge and selection of methods, the actions and interactions of healthcare professionals, and the social or cultural (rather than clin ...
**
Psychiatric hospital
Psychiatric hospitals, also known as mental health hospitals, behavioral health hospitals, are hospitals or wards specializing in the treatment of severe mental disorders, such as schizophrenia, bipolar disorder, eating disorders, dissociative ...
s (
history
History (derived ) is the systematic study and the documentation of the human activity. The time period of event before the History of writing#Inventions of writing, invention of writing systems is considered prehistory. "History" is an umbr ...
)
*
Military
A military, also known collectively as armed forces, is a heavily armed, highly organized force primarily intended for warfare. It is typically authorized and maintained by a sovereign state, with its members identifiable by their distinct ...
or
paramilitary
A paramilitary is an organization whose structure, tactics, training, subculture, and (often) function are similar to those of a professional military, but is not part of a country's official or legitimate armed forces. Paramilitary units carr ...
forces – see
military sociology
Military sociology is a subfield within sociology. It corresponds closely to C. Wright Mills's summons to connect the individual world to broader social structures.Crabb, Tyler and Segal, David. 2015. "Military Sociology" in ''Encyclopedia of Pu ...
* Industry –
business
Business is the practice of making one's living or making money by producing or Trade, buying and selling Product (business), products (such as goods and Service (economics), services). It is also "any activity or enterprise entered into for pr ...
es, including
corporation
A corporation is an organization—usually a group of people or a company—authorized by the state to act as a single entity (a legal entity recognized by private and public law "born out of statute"; a legal person in legal context) and r ...
s – see
financial institution
Financial institutions, sometimes called banking institutions, are business entities that provide services as intermediaries for different types of financial monetary transactions. Broadly speaking, there are three major types of financial insti ...
,
factory
A factory, manufacturing plant or a production plant is an industrial facility, often a complex consisting of several buildings filled with machinery, where workers manufacture items or operate machines which process each item into another. T ...
,
capitalism
Capitalism is an economic system based on the private ownership of the means of production and their operation for Profit (economics), profit. Central characteristics of capitalism include capital accumulation, competitive markets, pric ...
,
division of labour
The division of labour is the separation of the tasks in any economic system or organisation so that participants may specialise (specialisation). Individuals, organizations, and nations are endowed with, or acquire specialised capabilities, and ...
,
social class
A social class is a grouping of people into a set of Dominance hierarchy, hierarchical social categories, the most common being the Upper class, upper, Middle class, middle and Working class, lower classes. Membership in a social class can for ...
,
industrial sociology
Industrial sociology, until recently a crucial research area within the field of sociology of work, examines
"the direction and implications of trends in technological change, globalization, labour markets, work organization, managerial practic ...
*
Civil society
Civil society can be understood as the "third sector" of society, distinct from government and business, and including the family and the private sphere.[NGOs
A non-governmental organization (NGO) or non-governmental organisation (see spelling differences) is an organization that generally is formed independent from government. They are typically nonprofit entities, and many of them are active in h ...]
–
charitable organization
A charitable organization or charity is an organization whose primary objectives are philanthropy and social well-being (e.g. educational, Religion, religious or other activities serving the public interest or common good).
The legal definitio ...
s;
advocacy group
Advocacy groups, also known as interest groups, special interest groups, lobbying groups or pressure groups use various forms of advocacy in order to influence public opinion and ultimately policy. They play an important role in the developm ...
s;
political parties
A political party is an organization that coordinates candidates to compete in a particular country's elections. It is common for the members of a party to hold similar ideas about politics, and parties may promote specific ideological or pol ...
;
think tank
A think tank, or policy institute, is a research institute that performs research and advocacy concerning topics such as social policy, political strategy, economics, military, technology, and culture. Most think tanks are non-governmenta ...
s;
virtual communities
A virtual community is a social network of individuals who connect through specific social media, potentially crossing geographical and political boundaries in order to pursue mutual interests or goals. Some of the most pervasive virtual communi ...
In an extended context:
*
Art
Art is a diverse range of human activity, and resulting product, that involves creative or imaginative talent expressive of technical proficiency, beauty, emotional power, or conceptual ideas.
There is no generally agreed definition of wha ...
and
culture
Culture () is an umbrella term which encompasses the social behavior, institutions, and norms found in human societies, as well as the knowledge, beliefs, arts, laws, customs, capabilities, and habits of the individuals in these groups.Tyl ...
(See also:
culture industry
The term culture industry (german: Kulturindustrie) was coined by the critical theorists Theodor Adorno (1903–1969) and Max Horkheimer (1895–1973), and was presented as critical vocabulary in the chapter "The Culture Industry: Enlightenment ...
,
critical theory
A critical theory is any approach to social philosophy that focuses on society and culture to reveal, critique and challenge power structures. With roots in sociology and literary criticism, it argues that social problems stem more from soci ...
,
cultural studies
Cultural studies is an interdisciplinary field that examines the political dynamics of contemporary culture (including popular culture) and its historical foundations. Cultural studies researchers generally investigate how cultural practices re ...
,
cultural sociology
The sociology of culture, and the related cultural sociology, concerns the systematic analysis of culture, usually understood as the ensemble of symbolic codes used by a member of a society, as it is manifested in the society. For Georg Simmel, ...
)
* The
nation-state
A nation state is a political unit where the state and nation are congruent. It is a more precise concept than "country", since a country does not need to have a predominant ethnic group.
A nation, in the sense of a common ethnicity, may inc ...
– Social and political scientists often speak of the state as embodying all institutions such as schools, prisons, police, and so on. However, these institutions may be considered private or autonomous, whilst organised religion and family life certainly pre-date the advent of the nation state. The
Neo-Marxist
Neo-Marxism is a Marxist school of thought encompassing 20th-century approaches that amend or extend Marxism and Marxist theory, typically by incorporating elements from other intellectual traditions such as critical theory, psychoanalysis, or exi ...
thought of
Antonio Gramsci
Antonio Francesco Gramsci ( , , ; 22 January 1891 – 27 April 1937) was an Italian Marxist philosopher, journalist, linguist, writer, and politician. He wrote on philosophy, political theory, sociology, history, and linguistics. He was a ...
, for instance, distinguishes between institutions of political society (police, the army, legal system, etc.), which dominate directly and coercively—and civil society (the family, education system, etc.).
Social science perspectives
While institutions tend to appear to people in society as part of the natural, unchanging landscape of their lives, study of institutions by the social sciences tends to reveal the nature of institutions as
social construction
Social constructionism is a theory in sociology, social ontology, and communication theory which proposes that certain ideas about physical reality arise from collaborative consensus, instead of pure observation of said reality. The theory ...
s,
artifacts of a particular time, culture and society, produced by collective human choice, though not directly by individual intention. Sociology traditionally analyzed social institutions in terms of interlocking social
role
A role (also rôle or social role) is a set of connected behaviors, rights, moral obligation, obligations, beliefs, and social norm, norms as conceptualized by people in a social situation. It is an expected or free or continuously changing behavi ...
s and expectations. Social institutions created and were composed of groups of roles, or expected behaviors. The social function of the institution was executed by the fulfillment of roles. Basic biological requirements, for reproduction and care of the young, are served by the institutions of marriage and family, for example, by creating, elaborating and prescribing the behaviors expected for husband/father, wife/mother, child, etc.
The relationship of the institutions to human nature is a foundational question for the social sciences. Institutions can be seen as "naturally" arising from, and conforming to, human nature—a fundamentally conservative view—or institutions can be seen as artificial, almost accidental, and in need of architectural redesign, informed by expert social analysis, to better serve human needs—a fundamentally progressive view.
Adam Smith
Adam Smith (baptized 1723 – 17 July 1790) was a Scottish economist and philosopher who was a pioneer in the thinking of political economy and key figure during the Scottish Enlightenment. Seen by some as "The Father of Economics"——— ...
anchored his economics in the supposed human "propensity to truck, barter and exchange". Modern
feminists
Feminism is a range of socio-political movements and ideologies that aim to define and establish the political, economic, personal, and social equality of the sexes. Feminism incorporates the position that society prioritizes the male poi ...
have criticized traditional marriage and other institutions as element of an oppressive and obsolete
patriarchy
Patriarchy is a social system in which positions of dominance and privilege are primarily held by men. It is used, both as a technical anthropological term for families or clans controlled by the father or eldest male or group of males a ...
. The Marxist view—which sees human nature as
historically 'evolving' towards voluntary social cooperation, shared by some
anarchist
Anarchism is a political philosophy and movement that is skeptical of all justifications for authority and seeks to abolish the institutions it claims maintain unnecessary coercion and hierarchy, typically including, though not neces ...
s—is that supra-individual institutions such as the market and the state are incompatible with the individual liberty of a truly free society.
Economics, in recent years, has used
game theory
Game theory is the study of mathematical models of strategic interactions among rational agents. Myerson, Roger B. (1991). ''Game Theory: Analysis of Conflict,'' Harvard University Press, p.&nbs1 Chapter-preview links, ppvii–xi It has appli ...
to study institutions from two perspectives. Firstly, how do institutions survive and evolve? In this perspective, institutions arise from
Nash equilibria
In game theory, the Nash equilibrium, named after the mathematician John Nash, is the most common way to define the solution of a non-cooperative game involving two or more players. In a Nash equilibrium, each player is assumed to know the equili ...
of games. For example, whenever people pass each other in a corridor or thoroughfare, there is a need for customs, which avoid collisions. Such a custom might call for each party to keep to their own right (or left—such a choice is arbitrary, it is only necessary that the choice be uniform and consistent). Such customs may be supposed to be the origin of rules, such as the rule, adopted in many countries, which requires driving automobiles on the right side of the road.
Secondly, how do institutions affect behaviour? In this perspective, the focus is on behaviour arising from a given set of institutional rules. In these models, institutions determine the rules (i.e. strategy sets and utility functions) of games, rather than arise as equilibria out of games.
Douglass North
Douglass Cecil North (November 5, 1920 – November 23, 2015) was an American economist known for his work in economic history. He was the co-recipient (with Robert William Fogel) of the 1993 Nobel Memorial Prize in Economic Sciences. In the wor ...
argues, the very emergence of an institution reflects behavioral adaptations through his application of
increasing returns
In economics, diminishing returns are the decrease in marginal (incremental) output of a production process as the amount of a single factor of production is incrementally increased, holding all other factors of production equal ( ceteris paribu ...
. Over time institutions develop rules that incentivize certain behaviors over others because they present less risk or induce lower cost, and establish
path dependent outcomes. For example, the
Cournot duopoly Cournot competition is an economic model used to describe an industry structure in which companies compete on the amount of output they will produce, which they decide on independently of each other and at the same time. It is named after Antoine Au ...
model is based on an institution involving an auctioneer who sells all goods at the market-clearing price. While it is always possible to analyze behaviour with the institutions-as-equilibria approach instead, it is much more complicated.
In
political science
Political science is the scientific study of politics. It is a social science dealing with systems of governance and power, and the analysis of political activities, political thought, political behavior, and associated constitutions and la ...
, the effect of institutions on behavior has also been considered from a
meme
A meme ( ) is an idea, behavior, or style that spreads by means of imitation from person to person within a culture and often carries symbolic meaning representing a particular phenomenon or theme. A meme acts as a unit for carrying cultural i ...
perspective, like game theory borrowed from biology. A "memetic institutionalism" has been proposed, suggesting that institutions provide selection environments for political action, whereby differentiated retention arises and thereby a Darwinian evolution of institutions over time.
Public choice theory
Public choice, or public choice theory, is "the use of economic tools to deal with traditional problems of political science".Gordon Tullock, 9872008, "public choice," ''The New Palgrave Dictionary of Economics''. . Its content includes the st ...
, another branch of economics with a close relationship to political science, considers how government policy choices are made, and seeks to determine what the policy outputs are likely to be, given a particular political decision-making process and context.
Credibility thesis
The credibility thesis is a proposed heterodox theoretical framework for understanding how societal institutions or social rules come about and evolve. It posits that institutions emerge from intentional institution-building but never in the orig ...
purports that institutions emerge from intentional institution-building but never in the originally intended form.
Instead, institutional development is
endogenous
Endogenous substances and processes are those that originate from within a living system such as an organism, tissue, or cell.
In contrast, exogenous substances and processes are those that originate from outside of an organism.
For example, es ...
and
spontaneously ordered and institutional persistence can be explained by their credibility,
which is provided by the function that particular institutions serve.
In history, a distinction between eras or periods, implies a major and fundamental change in the system of institutions governing a society. Political and military events are judged to be of historical significance to the extent that they are associated with changes in institutions. In European history, particular significance is attached to the long transition from the
feudal
Feudalism, also known as the feudal system, was the combination of the legal, economic, military, cultural and political customs that flourished in Middle Ages, medieval Europe between the 9th and 15th centuries. Broadly defined, it was a wa ...
institutions of the
Middle Ages
In the history of Europe, the Middle Ages or medieval period lasted approximately from the late 5th to the late 15th centuries, similar to the post-classical period of global history. It began with the fall of the Western Roman Empire a ...
to the
modern
Modern may refer to:
History
* Modern history
** Early Modern period
** Late Modern period
*** 18th century
*** 19th century
*** 20th century
** Contemporary history
* Moderns, a faction of Freemasonry that existed in the 18th century
Phil ...
institutions, which govern contemporary life.
Theories of institutional emergence
Scholars have proposed different approaches to the emergence of institutions, such as spontaneous emergence, evolution and social contracts. Some scholars argue that institutions can emerge spontaneously without intent as individuals and groups converge on a particular institutional arrangement.
Other approaches see institutional development as the result of evolutionary or learning processes. Other scholars see institutions as being formed through social contracts or rational purposeful designs.
Theories of institutional change
In order to understand why some institutions persist and other institutions only appear in certain contexts, it is important to understand what drives institutional change.
Acemoglu, Johnson and Robinson assert that institutional change is endogenous. They posit a framework for institutional change that is rooted in the distribution of resources across society and preexisting political institutions. These two factors determine de jure and de facto political power, respectively, which in turn defines this period's economic institutions and next period's political institutions. Finally, the current economic institutions determine next period's distribution of resources and the cycle repeats. Douglass North attributes institutional change to the work of "political entrepreneurs", who see personal opportunities to be derived from a changed institutional framework. These entrepreneurs weigh the expected costs of altering the institutional framework against the benefits they can derive from the change. North describes institutional change as a process that is extremely incremental, and that works through both formal and informal institutions. Lipscy argues that patterns of institutional change vary according to underlying characteristics of issue areas, such as network effects.
In a 2020 study, Johannes Gerschewski created a two-by-two typology of institutional change depending on the sources of change (exogenous or endogenous) and the time horizon of change (short or long). In another 2020 study,
Erik Voeten created a two-by-two typology of institutional design depending on whether actors have full agency or are bound by structures, and whether institutional designs reflect historical processes or are optimal equilibriums.
Institutional persistence
North argues that because of the preexisting influence that existing organizations have over the existing framework, change that is brought about is often in the interests of these organizations. This produces a phenomenon called path dependence, which states that institutional patterns are persistent and endure over time. These paths are determined at critical junctures, analogous to a fork in the road, whose outcome leads to a narrowing of possible future outcomes. Once a choice is made during a critical juncture, it becomes progressively difficult to return to the initial point where the choice was made. James Mahoney studies path dependence in the context of national regime change in Central America and finds that liberal policy choices of Central American leaders in the 19th century was the critical juncture that led to the divergent levels of development that we see in these countries today. The policy choices that leaders made in the context of liberal reform policy led to a variety of self-reinforcing institutions that created divergent development outcomes for the Central American countries.
Though institutions are persistent, North states that paths can change course when external forces weaken the power of an existing organization. This allows other entrepreneurs to affect change in the institutional framework. This change can also occur as a result of gridlock between political actors produced by a lack of mediating institutions and an inability to reach a bargain. Artificial implementation of institutional change has been tested in political development but can have unintended consequences. North, Wallis, and Weingast divide societies into different social orders: open access orders, which about a dozen developed countries fall into today, and limited access orders, which accounts for the rest of the countries. Open access orders and limited access orders differ fundamentally in the way power and influence is distributed. As a result, open access institutions placed in limited access orders face limited success and are often coopted by the powerful elite for self-enrichment. Transition to more democratic institutions is not created simply by transplanting these institutions into new contexts, but happens when it is in the interest of the dominant coalition to widen access.
Natural selection
Ian Lustick Ian Steven Lustick (born 1949) is an American political scientist and specialist on the modern history and politics of the Middle East. He currently holds the Bess W. Heyman Chair in the department of Political Sciences at the University of Pennsylv ...
suggests that the social sciences, particularly those with the institution as a central concept, can benefit by applying the concept of
natural selection
Natural selection is the differential survival and reproduction of individuals due to differences in phenotype. It is a key mechanism of evolution, the change in the heritable traits characteristic of a population over generations. Charle ...
to the study of how institutions change over time.
By viewing institutions as existing within a
fitness landscape
Fitness may refer to:
* Physical fitness, a state of health and well-being of the body
* Fitness (biology), an individual's ability to propagate its genes
* Fitness (cereal), a brand of breakfast cereals and granola bars
* ''Fitness'' (magazine), ...
, Lustick argues that the gradual improvements typical of many institutions can be seen as analogous to hill-climbing within one of these fitness landscapes. This can eventually lead to institutions becoming stuck on
local maxima
In mathematical analysis, the maxima and minima (the respective plurals of maximum and minimum) of a function, known collectively as extrema (the plural of extremum), are the largest and smallest value of the function, either within a given ran ...
, such that for the institution to improve any further, it would first need to decrease its overall fitness score (e.g., adopt policies that may cause short-term harm to the institution's members). The tendency to get stuck on local maxima can explain why certain types of institutions may continue to have policies that are harmful to its members or to the institution itself, even when members and leadership are all aware of the faults of these policies.
As an example, Lustick cites Amyx's analysis of the gradual rise of the Japanese economy and its seemingly sudden reversal in the so-called
"Lost Decade". According to Amyx, Japanese experts were not unaware of the possible causes of Japan's economic decline. Rather, to return Japan's economy back to the path to economic prosperity, policymakers would have had to adopt policies that would first cause short-term harm to the Japanese people and government. Under this analysis, says Ian Lustick, Japan was stuck on a "local maxima", which it arrived at through gradual increases in its fitness level, set by the economic landscape of the 1970s and 80s. Without an accompanying change in institutional flexibility, Japan was unable to adapt to changing conditions, and even though experts may have known which changes the country needed, they would have been virtually powerless to enact those changes without instituting unpopular policies that would have been harmful in the short-term.
The lessons from Lustick's analysis applied to Sweden's economic situation can similarly apply to the political gridlock that often characterizes politics in the United States. For example, Lustick observes that any politician who hopes to run for elected office stands very little to no chance if they enact policies that show no short-term results. Unfortunately, there is a mismatch between policies that bring about short-term benefits with minimal sacrifice, and those that bring about long-lasting change by encouraging institution-level adaptations.
There are some criticisms to Lustick's application of natural selection theory to institutional change. Lustick himself notes that identifying the inability of institutions to adapt as a symptom of being stuck on a local maxima within a fitness landscape does nothing to solve the problem. At the very least, however, it might add credibility to the idea that truly beneficial change might require short-term harm to institutions and their members. David Sloan Wilson notes that Lustick needs to more carefully distinguish between two concepts: multilevel selection theory and evolution on multi-peaked landscapes.
Bradley Thayer points out that the concept of a fitness landscape and local maxima only makes sense if one institution can be said to be "better" than another, and this in turn only makes sense insofar as there exists some objective measure of an institution's quality. This may be relatively simple in evaluating the economic prosperity of a society, for example, but it is difficult to see how objectively a measure can be applied to the amount of freedom of a society, or the quality of life of the individuals within.
Institutionalization
The term "institutionalization" is widely used in social theory to refer to the process of embedding something (for example a concept, a social role, a particular value or mode of behavior) within an organization, social system, or society as a whole. The term may also be used to refer to committing a particular individual to an institution, such as a mental institution. To this extent, "institutionalization" may carry negative connotations regarding the treatment of, and damage caused to, vulnerable human beings by the oppressive or corrupt application of inflexible systems of social, medical, or legal controls by publicly owned, private or not-for-profit organizations.
The term "institutionalization" may also be used in a political sense to apply to the creation or organization of governmental institutions or particular bodies responsible for overseeing or implementing policy, for example in the welfare or development.
See also
*
Academic institution
Academic institution is an educational institution dedicated to education and research, which grants academic degrees. See also academy and university.
Types
* Primary schools – (from French ''école primaire'') institutions where children r ...
*
Actor analysis
Actor analysis can be seen as an approach to environmental management. Environmental issues are often very complex, because many parties are involved. All parties have their own interests, goals and strategies. Actor analysis provides a structure ...
*
Base and superstructure
In Marxist theory, society consists of two parts: the base (or substructure) and superstructure. The base refers to the mode of production which includes the forces and relations of production (e.g. employer–employee work conditions, the t ...
*
Cultural reproduction
Cultural reproduction, a concept first developed by French sociologist and cultural theorist Pierre Bourdieu, Jenks, Christopher. 1993. "Cultural Reproduction." New York: Routledge. p. 2. Bourdieu, Pierre, and Jean-Claude Passeron. 1990. ''Reprod ...
*
Dispositif Dispositif or dispositive is a term used by the French intellectual Michel Foucault, generally to refer to the various institutional, physical, and administrative mechanisms and knowledge structures which enhance and maintain the exercise of power ...
*
Historical institutionalism Historical institutionalism (HI) is a new institutionalist social science approach that emphasizes how timing, sequences and path dependence affect institutions, and shape social, political, economic behavior and change. Unlike functionalist the ...
*
Ideological state apparatus
"Ideology and Ideological State Apparatuses (Notes Towards an Investigation)" (French: "Idéologie et appareils idéologiques d'État (Notes pour une recherche)") is an essay by the French Marxist philosopher Louis Althusser. First published in 197 ...
*
Institute
An institute is an organisational body created for a certain purpose. They are often research organisations (research institutes) created to do research on specific topics, or can also be a professional body.
In some countries, institutes can ...
*
Institutional abuse Institutional abuse is the maltreatment of a person (often children or older adults) from a system of power. This can range from acts similar to home-based child abuse, such as neglect, physical and sexual abuse, and hunger, to the effects of assist ...
*
Institutional economics
Institutional economics focuses on understanding the role of the Sociocultural evolution, evolutionary process and the role of institutions in shaping Economy, economic Human behavior, behavior. Its original focus lay in Thorstein Veblen's instin ...
*
Institutional logic Institutional logic is a core concept in sociological theory and organizational studies, with growing interest in marketing theory. It focuses on how broader belief systems shape the cognition and behavior of actors.
Friedland and Alford (1991) w ...
*
Institutional memory
Institutional memory is a collective set of facts, concepts, experiences and knowledge held by a group of people.
Concept
Institutional memory has been defined as "the stored knowledge within the organization." Within any organization, tools ...
*
Institutional racism
Institutional racism, also known as systemic racism, is a form of racism that is embedded in the laws and regulations of a society or an organization. It manifests as discrimination in areas such as criminal justice, employment, housing, health ...
*
Institutionalist political economy
Institutionalist political economy, also known as institutional political economy or IPE, refers to a body of political economy, thought to stem from the works of institutionalists such as Thorstein Veblen, John Commons, Wesley Mitchell and John De ...
*
Linkage institution
A linkage institution is a structure within a society that connects the people to the government or centralized authority. These institutions include: elections, political parties, interest groups, and the media. Popular examples of linkage insti ...
*
List of oldest institutions in continuous operation
*
State
State may refer to:
Arts, entertainment, and media Literature
* ''State Magazine'', a monthly magazine published by the U.S. Department of State
* ''The State'' (newspaper), a daily newspaper in Columbia, South Carolina, United States
* ''Our S ...
,
Nation
A nation is a community of people formed on the basis of a combination of shared features such as language, history, ethnicity, culture and/or society. A nation is thus the collective identity of a group of people understood as defined by those ...
,
country
A country is a distinct part of the world, such as a state, nation, or other political entity. It may be a sovereign state or make up one part of a larger state. For example, the country of Japan is an independent, sovereign state, while the ...
,
Sovereign state
A sovereign state or sovereign country, is a polity, political entity represented by one central government that has supreme legitimate authority over territory. International law defines sovereign states as having a permanent population, defin ...
References
Further reading
* Berger, P. L. and T. Luckmann (1966), ''The Social Construction of Reality: A Treatise in the Sociology of Knowledge'', Anchor Books, Garden City, NY.
* Chang, Ha-Joon (ed.) (2007)
''Institutional Change and Economic Development'' Anthem Press.
* Greif, Avner (2006), ''Institutions and the Path to the Modern Economy: Lessons from Medieval Trade'', Cambridge University Press,
* North, D. C. (1990),
Institutions, Institutional Change and Economic Performance'. Cambridge University Press, Cambridge.
* Schotter, A. (1981), ''The Economic Theory of Social Institutions''. Cambridge University Press, Cambridge.
* Gielen, P. (ed. 2013), ''Institutional Attitudes. Instituting Art in a Flat World.'' Valiz: Amsterdam.
*
Whyte, William H., ''
The Organization Man
''The Organization Man'' is a bestselling book by William H. Whyte, originally published by Simon & Schuster in 1956.Whyte, William H. (1956). ''The Organization Man.'' Simon & Schuster,online copies/ref> It was one of the most influential books ...
'', Doubleday Publishing, 1956.
excerpts from Whyte's book
*
Social Institutions" Stanford Encyclopedia of Philosophy
{{Authority control
Comparative politics
Political science terminology