New Institutional Economics

An introduction and critical appraisal

Summary:
In addition to the usual updating of the literature and an expansion in the direction of "new institutional economics of finance," the fourth edition brings an important clarification: new institutional economics is something fundamentally different from microeconomics supplemented by transaction costs. It is a new style of thinking that, in addition to the much-cited transaction costs, takes into account the facts of incomplete foresight and bounded rationality. According to it, institutions are social tools with the help of which people try to account for the inevitable limits of their foresight and rationality in the pursuit of their goals, taking transaction costs into account.

Authors: Richter, Rudolf ; Furubotn, Eirik G. ; Streissler, Monika (Trans.