EAN: 9781509559008

INSTITUTIONAL AND ORGANIZATIONAL ECONOMICS - TO...

Why do some countries succeed while others struggle? Why are some firms profitable while rivals
fail? Why do some marriages thrive and others end in divorce? These questions seem unrelated 
but societies  companies  and marriages have one important thing in common: they involve more
than one individual. They thus face the same fundamental challenges. How can people be made to
help rather than hurt each other? How can they use sacrifice  cooperation  and coercion to
promote the common good? In this introductory text  Tore Ellingsen equips readers to answer
essential questions around the success and failure of humans in groups  drawing on behavioral
game theory  psychology  and sociology. He emphasizes how other-regarding preferences such as
altruism and dutifulness matter for societies' prosperity  and analyzes the role of culture in
the form of shared values and understandings. One lesson is that cooperation is facilitated
when people anticipate that they will hold common memories of past behavior  especially if
agreements take precedence over leaders' authority. A groundbreaking text  Institutional and
Organizational Economics is essential reading for students and scholars of economics  political
science  sociology  and public administration.

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