IDEAS home Printed from https://ideas.repec.org/a/kap/ejlwec/v23y2007i3p251-271.html
   My bibliography  Save this article

In search for rules that secure gains from cooperation: the heuristic value of social dilemmas for normative institutional economics

Author

Listed:
  • Martin Petrick
  • Ingo Pies

Abstract

We ask how normative statements are possible within an economic theory framework that recognises the importance of institutional arrangements. Instead of applying established outcome-oriented criteria of social welfare, we examine whether the rules of economic interaction allow the acquisition of gains from cooperation. We suggest to reconstruct any interaction as an existing or repealed social dilemma. This approach helps to identify common rule interests which create room for improvement of all parties involved, and to suggest desirable institutional reforms. Our policy applications include credit markets in developing countries and the unemployment problem in Europe.
(This abstract was borrowed from another version of this item.)

Suggested Citation

  • Martin Petrick & Ingo Pies, 2007. "In search for rules that secure gains from cooperation: the heuristic value of social dilemmas for normative institutional economics," European Journal of Law and Economics, Springer, vol. 23(3), pages 251-271, June.
    • Handle: RePEc:kap:ejlwec:v:23:y:2007:i:3:p:251-271
    DOI: 10.1007/s10657-007-9014-x
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1007/s10657-007-9014-x
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1007/s10657-007-9014-x?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to look for a different version below or

    for a different version of it.

    Other versions of this item:

    References listed on IDEAS

    as
    1. Ernst Fehr & Klaus M. Schmidt, 1999. "A Theory of Fairness, Competition, and Cooperation," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 114(3), pages 817-868.
    2. Thráinn Eggertsson, 1998. "Limits to Institutional Reforms," Scandinavian Journal of Economics, Wiley Blackwell, vol. 100(1), pages 335-357, March.
    3. Giuseppe Coco, 2000. "On the Use of Collateral," Journal of Economic Surveys, Wiley Blackwell, vol. 14(2), pages 191-214, April.
    4. Ordeshook,Peter C., 1986. "Game Theory and Political Theory," Cambridge Books, Cambridge University Press, number 9780521315937, Enero-Abr.
    5. Bell, Clive, 1988. "Credit markets and interlinked transactions," Handbook of Development Economics, in: Hollis Chenery & T.N. Srinivasan (ed.), Handbook of Development Economics, edition 1, volume 1, chapter 16, pages 763-830, Elsevier.
    6. Ghatak, Maitreesh & Guinnane, Timothy W., 1999. "The economics of lending with joint liability: theory and practice," Journal of Development Economics, Elsevier, vol. 60(1), pages 195-228, October.
    7. Inman, Robert P., 1987. "Markets, governments, and the "new" political economy," Handbook of Public Economics, in: A. J. Auerbach & M. Feldstein (ed.), Handbook of Public Economics, edition 1, volume 2, chapter 12, pages 647-777, Elsevier.
    8. Gordon Tullock, 1985. "Adam Smith and the Prisoners' Dilemma," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 100(Supplemen), pages 1073-1081.
    9. Petrick, Martin, 2004. "Credit rationing of Polish farm households: a theoretical and empirical analysis," Studies on the Agricultural and Food Sector in Transition Economies, Leibniz Institute of Agricultural Development in Transition Economies (IAMO), volume 26, number 93022.
    10. James M. Buchanan, 2004. "The Status of the Status Quo," Constitutional Political Economy, Springer, vol. 15(2), pages 133-144, June.
    11. David de Meza & David C. Webb, 1987. "Too Much Investment: A Problem of Asymmetric Information," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 102(2), pages 281-292.
    12. Snower, Dennis J., 1994. "The Simple Economics of Benefit Transfers," CEPR Discussion Papers 1086, C.E.P.R. Discussion Papers.
    13. Demsetz, Harold, 1969. "Information and Efficiency: Another Viewpoint," Journal of Law and Economics, University of Chicago Press, vol. 12(1), pages 1-22, April.
    14. Ghatak, Maitreesh, 2002. "Erratum to "The economics of lending with joint liability: theory and practice" [J. Devel. Econ. 60 (1999) 195-228," Journal of Development Economics, Elsevier, vol. 69(1), pages 305-306, October.
    15. Pies, Ingo, 2001. "Eucken und von Hayek im Vergleich," Untersuchungen zur Ordnungstheorie und Ordnungspolitik, Mohr Siebeck, Tübingen;Walter Eucken Institut, Freiburg, Germany, edition 1, volume 43, number urn:isbn:9783161476365, June.
    16. Spermann Alexander, 1999. "Fighting Long-term Unemployment with Targeted Employment Subsidies: Benefit Transfer Programme (BTP) versus Targeted Negative Income Tax (TNIT) / Die Bekämpfung der Langzeitarbeitslosigkeit durch ziel," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), De Gruyter, vol. 218(5-6), pages 647-657, October.
    17. Ghatak, Maitreesh & Guinnane, Timothy W., 2003. "Erratum to "The economics of lending with joint liability: theory and practice" [J. Devel. Econ. 60 (1999) 195-228," Journal of Development Economics, Elsevier, vol. 70(1), pages 261-262, February.
    18. Stiglitz, Joseph E & Weiss, Andrew, 1981. "Credit Rationing in Markets with Imperfect Information," American Economic Review, American Economic Association, vol. 71(3), pages 393-410, June.
    19. Assar Lindbeck & Dennis J. Snower, 2001. "Insiders versus Outsiders," Journal of Economic Perspectives, American Economic Association, vol. 15(1), pages 165-188, Winter.
    20. William M. Dugger, 1996. "The Mechanisms of Governance," Journal of Economic Issues, Taylor & Francis Journals, vol. 30(4), pages 1212-1216, December.
    21. Ingo Pies, 1996. "Public choice versus constitutional economics: A methodological interpretation of the Buchanan research program," Constitutional Political Economy, Springer, vol. 7(1), pages 21-34, March.
    22. Miller,Gary J., 1992. "Managerial Dilemmas," Cambridge Books, Cambridge University Press, number 9780521372817, Enero-Abr.
    23. de Meza, David & Webb, David, 2000. "Does credit rationing imply insufficient lending?," Journal of Public Economics, Elsevier, vol. 78(3), pages 215-234, November.
    24. Hollis Chenery† & T.N. Srinivasan (ed.), 1988. "Handbook of Development Economics," Handbook of Development Economics, Elsevier, edition 1, volume 1, number 1.
    25. Buchanan, James M, 1975. "A Contractarian Paradigm for Applying Economic Theory," American Economic Review, American Economic Association, vol. 65(2), pages 225-230, May.
    26. Ken Binmore, 1994. "Game Theory and the Social Contract, Volume 1: Playing Fair," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262023636, December.
    27. repec:bla:scandj:v:100:y:1998:i:1:p:335-57 is not listed on IDEAS
    Full references (including those not matched with items on IDEAS)

    Citations

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


    Cited by:

    1. Pies, Ingo, 2009. "Die Entwicklung der Unternehmensethik - Retrospektive und prospektive Betrachungen aus Sicht der Ordonomik," Discussion Papers 2009-11, Martin Luther University of Halle-Wittenberg, Chair of Economic Ethics.
    2. Petrick, Martin, 2008. "Theoretical and methodological topics in the institutional economics of European agriculture. With applications to farm organisation and rural credit arrangements," Studies on the Agricultural and Food Sector in Transition Economies, Leibniz Institute of Agricultural Development in Transition Economies (IAMO), volume 45, number 92318.
    3. Pies, Ingo & Hielscher, Stefan & Beckmann, Markus, 2008. "Corporate citizenship as stakeholder management: An ordonomic approach to business ethics," Discussion Papers 2008-4, Martin Luther University of Halle-Wittenberg, Chair of Economic Ethics.
    4. Pies, Ingo & Beckmann, Markus & Hielscher, Stefan, 2012. "The political role of the business firm: An ordonomic concept of corporate citizenship developed in comparison with the Aristoleian idea of individual citizenship," Discussion Papers 2012-1, Martin Luther University of Halle-Wittenberg, Chair of Economic Ethics.
    5. Pies, Ingo, 2009. "Das ordonomische Forschungsprogramm," Discussion Papers 2009-7, Martin Luther University of Halle-Wittenberg, Chair of Economic Ethics.
    6. Vladislav Valentinov & Lioudmila Chatalova, 2016. "Institutional Economics and Social Dilemmas: a Systems Theory Perspective," Systems Research and Behavioral Science, Wiley Blackwell, vol. 33(1), pages 138-149, January.
    7. Pies, Ingo, 2013. "The ordonomic approach to order ethics," Discussion Papers 2013-20, Martin Luther University of Halle-Wittenberg, Chair of Economic Ethics.
    8. Pies Ingo & Wockenfuß Christof, 2008. "Armutsbekämpfung versus Demokratieförderung: Wie lässt sich der entwicklungspolitische Trade-Off überwinden? / Poverty reduction versus democracy promotion? How to overcome the trade-off in developmen," ORDO. Jahrbuch für die Ordnung von Wirtschaft und Gesellschaft, De Gruyter, vol. 59(1), pages 405-440, January.
    9. Valentinov, Vladislav & Baum, Sabine, 2008. "The institutional economics of rural development: Beyond market failure," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 9(3), pages 457-462.
    10. Pies, Ingo & Wockenfuß, Christof, 2008. "Armutsbekämpfung versus Demokratieförderung: Wie lässt sich der entwicklungspolitische Trade-Off überwinden?," Discussion Papers 2008-3, Martin Luther University of Halle-Wittenberg, Chair of Economic Ethics.
    11. Wockenfuß, Christof, 2009. "Demokratie durch Entwicklungskonkurrenz," Discussion Papers 2009-17, Martin Luther University of Halle-Wittenberg, Chair of Economic Ethics.
    12. Pies, Ingo & Beckmann, Markus & Hielscher, Stefan, 2007. "Mind the Gap! - Ordonomische Überlegungen zur Sozialstruktur und Semantik moderner Governance," Discussion Papers 2007-16, Martin Luther University of Halle-Wittenberg, Chair of Economic Ethics.
    13. Beckmann, Markus & Pies, Ingo & von Winning, Alexandra, 2012. "Passion and compassion as strategic drivers for sustainable value creation: An ordonomic perspective on social and ecological entrepreneurship," Discussion Papers 2012-22, Martin Luther University of Halle-Wittenberg, Chair of Economic Ethics.
    14. Pies, Ingo & Beckmann, Markus & Hielscher, Stefan, 2009. "Sozialstruktur und Semantik - Ordonomik als Forschungsprogramm in der modernen (Welt-)Gesellschaft," Discussion Papers 2009-6, Martin Luther University of Halle-Wittenberg, Chair of Economic Ethics.
    15. Rüdiger Waldkirch & Matthias Meyer & Karl Homann, 2009. "Accounting for the Benefits of Social Security and the Role of Business: Four Ideal Types and Their Different Heuristics," Journal of Business Ethics, Springer, vol. 89(3), pages 247-267, November.
    16. Gramzow, Andreas, 2009. "Rural development as provision of local public goods: Theory and evidence from Poland," Studies on the Agricultural and Food Sector in Transition Economies, Leibniz Institute of Agricultural Development in Transition Economies (IAMO), volume 51, number 92313.
    17. Petrick, Martin, 2013. "Reversing the rural race to the bottom: an evolutionary model of neo-endogenous rural development," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 40(4), pages 707-735.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Petrick, Martin, 2008. "Theoretical and methodological topics in the institutional economics of European agriculture. With applications to farm organisation and rural credit arrangements," Studies on the Agricultural and Food Sector in Transition Economies, Leibniz Institute of Agricultural Development in Transition Economies (IAMO), volume 45, number 92318.
    2. Petrick, Martin, 2006. "How to Make Institutional Economics Policy-Relevant: Theoretical Considerations and an Application to Rural Credit Markets in Developing Countries," 2006 Annual Meeting, August 12-18, 2006, Queensland, Australia 25702, International Association of Agricultural Economists.
    3. Petrick, Martin, 2004. "Governing Structural Change And Externalities In Agriculture: Toward A Normative Institutional Economics Of Rural Development," IAMO Discussion Papers 14878, Institute of Agricultural Development in Transition Economies (IAMO).
    4. Conning, Jonathan & Udry, Christopher, 2007. "Rural Financial Markets in Developing Countries," Handbook of Agricultural Economics, in: Robert Evenson & Prabhu Pingali (ed.), Handbook of Agricultural Economics, edition 1, volume 3, chapter 56, pages 2857-2908, Elsevier.
    5. Martin Petrick, 2005. "Empirical measurement of credit rationing in agriculture: a methodological survey," Agricultural Economics, International Association of Agricultural Economists, vol. 33(2), pages 191-203, September.
    6. Werner, Arndt, 2008. "Do Credit Constraints Matter more for College Dropout Entrepreneurs?," MPRA Paper 11867, University Library of Munich, Germany.
    7. Daripa, Arup, 2008. "Optimal collective contract without peer information or peer monitoring," Journal of Development Economics, Elsevier, vol. 86(1), pages 147-163, April.
    8. Emilios Galariotis & Christophe Villa & Nurmukhammad Yusupov, 2011. "Recent Advances in Lending to the Poor with Asymmetric Information," Journal of Development Studies, Taylor & Francis Journals, vol. 47(9), pages 1371-1390, July.
    9. Leonardo Becchetti & Fabio Pisani, 2010. "Microfinance, subsidies and local externalities," Small Business Economics, Springer, vol. 34(3), pages 309-321, April.
    10. Laffont, Jean-Jacques, 2003. "Collusion and group lending with adverse selection," Journal of Development Economics, Elsevier, vol. 70(2), pages 329-348, April.
    11. Sewaid, Ahmed & Parker, Simon C. & Kaakeh, Abdulkader, 2021. "Explaining serial crowdfunders' dynamic fundraising performance," Journal of Business Venturing, Elsevier, vol. 36(4).
    12. Ahlin, Christian, 2015. "The role of group size in group lending," Journal of Development Economics, Elsevier, vol. 115(C), pages 140-155.
    13. Tomy, Rimmy E. & Wittenberg-Moerman, Regina, 2024. "Community membership and reciprocity in lending: Evidence from informal markets," Journal of Accounting and Economics, Elsevier, vol. 78(1).
    14. Gyimah-Brempong, Kwabena & Olomola, Aderibigbe, 2014. "Loan demand and rationing among small-scale farmers in Nigeria," IFPRI discussion papers 1403, International Food Policy Research Institute (IFPRI).
    15. Christian Ahlin, 2020. "Group lending, matching patterns, and the mystery of microcredit: Evidence from Thailand," Quantitative Economics, Econometric Society, vol. 11(2), pages 713-759, May.
    16. Gramzow, Andreas, 2009. "Rural development as provision of local public goods: Theory and evidence from Poland," Studies on the Agricultural and Food Sector in Transition Economies, Leibniz Institute of Agricultural Development in Transition Economies (IAMO), volume 51, number 92313.
    17. Uschi Backes-Gellner & Arndt Werner, 2007. "Entrepreneurial Signaling via Education: A Success Factor in Innovative Start-Ups," Small Business Economics, Springer, vol. 29(1), pages 173-190, June.
    18. van Rijn, Jordan, 2018. "The Effect of Membership Expansion on Credit Union Risk and Returns," Staff Paper Series 588, University of Wisconsin, Agricultural and Applied Economics.
    19. Sommarat Chantarat & Chayanee Chawanote & Lathaporn Ratanavararak & Chonnakan Rittinon & Boontida Sa-ngimnet & Narongrit Adultananusak, 2023. "Financial Lives and the Vicious Cycle of Debt among Thai Agricultural Households," PIER Discussion Papers 204, Puey Ungphakorn Institute for Economic Research.
    20. Olivier Accominotti & Delio Lucena‐Piquero & Stefano Ugolini, 2021. "The origination and distribution of money market instruments: sterling bills of exchange during the first globalization," Economic History Review, Economic History Society, vol. 74(4), pages 892-921, November.

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;
    ;
    ;
    ;
    ;

    JEL classification:

    • D02 - Microeconomics - - General - - - Institutions: Design, Formation, Operations, and Impact
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • D74 - Microeconomics - - Analysis of Collective Decision-Making - - - Conflict; Conflict Resolution; Alliances; Revolutions

    Statistics

    Access and download statistics

    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:kap:ejlwec:v:23:y:2007:i:3:p:251-271. 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.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with 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: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    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.