Integration and Informal Institutions

Informal Institutions and Property Rights

In recent years, the call for strong and clear property rights has grown in law and development circles. In the landmark book The Mystery of Capital: Why Capitalism Triumphs in the West and Fails Everywhere Else, de Soto put forth the claim that “strong and clear” property rights, formalized rather than informal, are necessary for economic efficiency and for the protection of the poor, who occu...

Matching in Informal Financial Institutions.

This paper analyzes an informal financial institution that brings heterogeneous agents together in groups. We analyze decentralized matching into these groups, and the equilibrium composition of participants that consequently arises. We find that participants sort remarkably well across the competing groups, and that they re-sort immediately following an unexpected exogenous regulatory change. ...

Formal and Informal Market Institutions : Embeddedness Revisited

Market exchange involves many cognitive and non-cognitive processes — e.g., search, inference, prediction, negotiation. Much attention has been devoted to these issues both in theory and in experimental economics. I focus on the enforcement of market transactions against opportunistic behavior. I first discuss the different mechanisms that can deter opportunistic breach of contract. Some of the...

Informal Institutions a “Weaknesses” of Hu Behavior

Information Integration in Institutions

This paper unifies and/or generalizes several approaches to information, including the information flow of Barwise and Seligman, the formal conceptual analysis of Wille, the lattice of theories of Sowa, the categorical general systems theory of Goguen, and the cognitive semantic theories of Fauconnier, Turner, Gärdenfors, and others. Its rigorous approach uses category theory to achieve indepen...