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Complementary institutions and economic development: An experimental study

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  • Kloosterman, Andrew
  • Schotter, Andrew

Abstract

This paper considers the problem of why societies develop differently, a question most recently articulated by Acemoglu and Robinson (2012). We follow North (1990) in defining institutions as the “rules of the game in society.” The question then becomes why do some societies develop functional institutions while others do not? To investigate this question, we develop and examine a specific type of dynamic game (which we call an Institutional Game). Our point is that complementarities among the choices that all societies make as they develop can help to answer this question.

Suggested Citation

  • Kloosterman, Andrew & Schotter, Andrew, 2016. "Complementary institutions and economic development: An experimental study," Games and Economic Behavior, Elsevier, vol. 99(C), pages 186-205.
  • Handle: RePEc:eee:gamebe:v:99:y:2016:i:c:p:186-205
    DOI: 10.1016/j.geb.2016.08.001
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    References listed on IDEAS

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    1. repec:eee:eecrev:v:94:y:2017:i:c:p:240-262 is not listed on IDEAS
    2. Drouvelis, Michalis & Sonnemans, Joep, 2017. "The endowment effect in games," European Economic Review, Elsevier, vol. 94(C), pages 240-262.

    More about this item

    Keywords

    Economic development; Dynamic games; Institutions;

    JEL classification:

    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior
    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development

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