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1 results

  • How institutions decay: towards an endogenous theory

  • Lisa Herzog, Frank Hindriks, Rafael Wittek
  • Journal:
    Economics & Philosophy , First View
    Published online by Cambridge University Press:
    07 October 2024, pp. 1-18
    • Article
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  • When organizations solve collective action problems or realize values, they do so by means of institutions. These are commonly regarded as self-stabilizing. Yet, they can also be subject to endogenous processes of decay, or so we argue. We explain this in terms of psychological and cultural processes, which can change even if the formal structures remain unchanged. One key implication is that the extent to which norms, values and ideals motivate individuals to comply with institutions is limited.