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Market institutions and economic evolution

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Author Info
Brian J. Loasby () (Department of Economics, University of Stirling, Stirling FK9 4LA, UK)

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Abstract

Our cognitive limitations cause us to rely on institutions to guide reasonable behaviour; market institutions reduce the costs of search, negotiation, and monitoring entailed in making single transactions. The making of markets requires an investment of immaterial capital, the major share of which typically is provided by those who expect to be very active on one side of the market. This `external organisation' provides producers with information for the development of new products; by simplifying transactions it also allows consumers greater scope for developing consumption capabilities. Thus the evolution of institutions guides the evolution of goods and services.

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Publisher Info
Article provided by Springer in its journal Journal of Evolutionary Economics.

Volume (Year): 10 (2000)
Issue (Month): 3 ()
Pages: 297-309
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Handle: RePEc:spr:joevec:v:10:y:2000:i:3:p:297-309

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Related research
Keywords: Institutions - Markets - Producers - Consumers - Evolution;

Find related papers by JEL classification:
D1 - Microeconomics - - Household Behavior
D2 - Microeconomics - - Production and Organizations
L1 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance
L2 - Industrial Organization - - Firm Objectives, Organization, and Behavior
O1 - Economic Development, Technological Change, and Growth - - Economic Development

Cited by:
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  1. Consoli Davide & Patrucco Pier Paolo, 2004. "Production of collective knowledge: some evidence from european metropolitan areas," Dipartimento di Economia "S. Cognetti de Martiis" LEI & BRICK - Laboratorio di economia dell'innovazione "Franco Momigliano", Bureau of Research in Innovation, Complexity and Knowledge, Collegio Carlo 200402, University of Turin. [Downloadable!]
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  2. Filipe J. Sousa & Luís M. de Castro, 2008. "How is the relationship significance brought about? A critical realist approach," FEP Working Papers 282, Universidade do Porto, Faculdade de Economia do Porto. [Downloadable!]
  3. Anders Malmberg & Peter Maskell, 2005. "Localized Learning Revisited," DRUID Working Papers 05-19, DRUID, Copenhagen Business School, Department of Industrial Economics and Strategy/Aalborg University, Department of Business Studies. [Downloadable!]
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  4. Davide Consoli, 2005. "Cash and the Counter: Capabilities and Preferences in the Demand for Banking Technologies," Development and Comp Systems 0511010, EconWPA. [Downloadable!]
  5. Nikolay Nenovsky & Yorgos Rizopoulos, 2004. "Measuring the Institutional Change of the Monetary Regime in a Political Economy Perspective (Groups of interest and monetary variables during the Currency Board introduction in Bulgaria)," William Davidson Institute Working Papers Series wp732, William Davidson Institute at the University of Michigan Stephen M. Ross Business School. [Downloadable!]
  6. Davide Consoli, 2005. "Cash and the Counter: Capabilities and Preferences in the Demand for Banking Technologies," Industrial Organization 0511001, EconWPA. [Downloadable!]
  7. Julian P. Christ & André P. Slowak, 2009. "Why Blu-ray vs. HD-DVD is not VHS vs. Betamax: The Co-evolution of Standard-setting Consortia," Violette Reihe Arbeitspapiere 29-2009, Promotionsschwerpunkt Globalisierung und Beschaeftigung. [Downloadable!]
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  8. Brian J. Loasby, 2001. "Industrial Dynamics Why Connections Matter," DRUID Working Papers 01-09, DRUID, Copenhagen Business School, Department of Industrial Economics and Strategy/Aalborg University, Department of Business Studies. [Downloadable!]
  9. Davide Consoli, 2005. "Changing boundaries and structure of a technological system: lessons from UK retail banking," Industrial Organization 0506006, EconWPA. [Downloadable!]
  10. Davide Consoli, 2005. "Changing boundaries and structure of a technological system: lessons from UK retail banking," Development and Comp Systems 0506004, EconWPA. [Downloadable!]
  11. Nightingale, J.J. & Piggott, R.R. & Griffith, G.R., 2002. "Explaining Market and Enterprise Structures in the Food Marketing Chain," Working Papers 12939, University of New England, School of Economics. [Downloadable!]
  12. Smith, Peter, 2004. "Reworking the Standard Model of Competitive Markets: The Role of Fuzzy Logic and Genetic Algorithms in Modelling Complex Non-Linear Economic System," General Discussion Papers 30569, University of Manchester, Institute for Development Policy and Management (IDPM). [Downloadable!]
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