IDEAS home Printed from https://ideas.repec.org/a/cai/reidbu/rei_129_0087.html
   My bibliography  Save this article

How to design institutional frameworks for markets. New institutional economics meet the needs of industrial organization

Author

Listed:
  • Éric Brousseau
  • Antonio Nicita

Abstract

The key role of institutions for economic performance has recently been acknowledged in the economic policy debate. This paper aims at pointing out the main policy lessons and the recommendations to be drawn from New Institutional Economics (NIE), when considering the organization of markets. We examine, first, the domains ? namely the establishment of property rights, the management of externalities and the maintenance of the competitive process ? on which NIE identifies the potential impact of institutional tools on market performance. Second, we highlight the tradeoffs identified in the literature regarding the organization of an institutional system. This leads us to consider the respective virtues and drawbacks of hierarchical vs. transactional, public vs. private, centralized vs. decentralized and formal vs. informal ordering. Finally, we conclude by showing how NIE draws attention to the difficulties faced by political or economic decision-makers when they attempt to enhance market efficiency by reforming institutional frameworks.

Suggested Citation

  • Éric Brousseau & Antonio Nicita, 2010. "How to design institutional frameworks for markets. New institutional economics meet the needs of industrial organization," Revue d'économie industrielle, De Boeck Université, vol. 0(1), pages 87-118.
    • Handle: RePEc:cai:reidbu:rei_129_0087
    as

    Download full text from publisher

    File URL: http://www.cairn.info/load_pdf.php?ID_ARTICLE=REI_129_0087
    Download Restriction: free
    File URL: http://www.cairn.info/revue-d-economie-industrielle-2010-1-page-87.htm
    Download Restriction: free
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Thomas Bolognesi, 2013. "Modernisation of urban water services management in Europe and prospects for sustainability: an analysis in terms of institutional resource regimes," Working Papers halshs-01058059, HAL.
    2. Antonio Nicita, 2014. "The legacy of R. Coase (1910–2013): toward a theory of institutional 'moving equilibrium'?," International Review of Economics, Springer;Happiness Economics and Interpersonal Relations (HEIRS), vol. 61(2), pages 93-108, June.
    3. Thomas Bolognesi, 2014. "The paradox of the modernisation of urban water systems in Europe: Intrinsic institutional limits for sustainability," Natural Resources Forum, Blackwell Publishing, vol. 38(4), pages 270-281, November.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:cai:reidbu:rei_129_0087. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Jean-Baptiste de Vathaire (email available below). General contact details of provider: https://www.cairn.info/revue-d-economie-industrielle.htm .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.