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This second edition assesses some of the major refinements, extensions, and useful applications that have developed in neoinstitutionalist thought in recent years. More attention is given to the overlap between the New Institutional Economics and developments in economic history and political science. In addition to updated references, new material includes analysis of parallel developments in the field of economic sociology and its attacks on representatives of the NIE as well as an explanation of the institution-as-an-equilibrium-of-game approach.

Already an international best seller, Institutions and Economic Theory is essential reading for economists and students attracted to the NIE approach. Scholars from such disciplines as political science, sociology, and law will find the work useful as the NIE continues to gain wide academic acceptance. A useful glossary for students is included.

Eirik Furubotn is Honorary Professor of Economics, Co-Director of the Center for New Institutional Economics, University of Saarland, Germany and Research Fellow, Private Enterprise Research Center, Texas A&M University.

Rudolph Richter is Professor Emeritus of Economics and Director of the Center for New Institutional Economics, University of Saarland, Germany.

Table of Contents

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  1. Cover
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  1. Front Matter
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  1. Contents
  2. pp. v-viii
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  1. Acknowledgments for the First Edition
  2. pp. ix-x
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  1. Acknowledgments for the Second Edition
  2. p. xi
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  1. Preface to the First Edition
  2. pp. xiii-xv
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  1. Preface to the Second Edition
  2. pp. xvii-xviii
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  1. 1. Introductory Observations
  2. pp. 1-45
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  1. 2. Transaction Costs
  2. pp. 47-77
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  1. 3. Absolute Property Rights: Ownership of Physical Objects
  2. pp. 79-133
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  1. 4. Relative Property Rights Contractual Obligations
  2. pp. 135-198
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  1. 5. Contract Theory
  2. pp. 199-290
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  1. 6. The New Institutional Economics Applied to Markets, Firms, and the State: General Remarks
  2. pp. 291-312
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  1. 7. The New Institutional Economics of the Market
  2. pp. 313-359
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  1. 8. The New Institutional Economics of the Firm
  2. pp. 361-469
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  1. 9. The New Institutional Economics of the State
  2. pp. 471-499
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  1. 10. Future Development of the New Institutional Economics
  2. pp. 501-554
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  1. Glossary
  2. pp. 555-569
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  1. References
  2. pp. 571-630
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  1. Author Index
  2. pp. 631-641
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  1. Subject Index
  2. pp. 643-653
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  1. Back Matter
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