IDEAS home Printed from
   My bibliography  Save this paper

Cognitive Rules and Institutions - On the Interrelation of Intrapersonal and Interpersonal Rules


  • Budzinski, Oliver


Rules possess an important influence on rational individual behaviour. In economic analyses, two different types of rules occur that both induce rule-following behaviour, however, they are rarely distinguished. The differentiation of interpersonal rules (institutions as collective rules) and intrapersonal rules (cognitive rules and models as individual rules) allows for a clarification of substantial differences of the two types of rules, for example, concerning the incorporated knowledge and rule-persistence. Above all, the analysis of the interrelation of the two types of rules offers fruitful theoretical and political insights that still are not explored much in economics. The important dimensions to be considered are rule-harmony that stabilizes institutional arrangements and rule-conflict that induces pressure to persistent institutions. In this context, competition can be seen as a medium of interaction that allows individual agents to learn both about the behaviour of interacting agents and the nature and effects of the institutional framework. Applications of the generated insights include the driving forces and obstacles of institutional reform. Along with other influential factors, institutional reforms are inhibited if harmony between the old institutional arrangement and the prevailing cognitive theories and rules dominates, and encouraged if rule-conflict prevails. Thus, institutional policy has to consider the interrelation of intrapersonal and interpersonal rules to achieve its targets with a suitable probability. Further research probably will allow to derive general principles to institutional policy that facilitate successful institutional reforms.

Suggested Citation

  • Budzinski, Oliver, 2001. "Cognitive Rules and Institutions - On the Interrelation of Intrapersonal and Interpersonal Rules," Hannover Economic Papers (HEP) dp-241, Leibniz Universität Hannover, Wirtschaftswissenschaftliche Fakultät.
  • Handle: RePEc:han:dpaper:dp-241

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.


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

    Cited by:

    1. Kurt Dopfer, 2012. "The origins of meso economics," Journal of Evolutionary Economics, Springer, vol. 22(1), pages 133-160, January.

    More about this item


    institutions; cognitive rules; rational individual behaviour; competition;

    JEL classification:

    • A12 - General Economics and Teaching - - General Economics - - - Relation of Economics to Other Disciplines
    • D78 - Microeconomics - - Analysis of Collective Decision-Making - - - Positive Analysis of Policy Formulation and Implementation


    Access and download statistics


    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:han:dpaper:dp-241. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Heidrich, Christian). General contact details of provider: .

    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 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.

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

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.