An Economic Response to “Why Inefficient Institutions Always Exist?” from the Micro-Perspective
As is well‐known,“foot‐binding”,regarded as an inefficient institution owing to its great harm to the women’s body and mind, existed and lasted for a very long period in the history of China. Furthermore, we are faced with the general question: why so many inefficient institutions in reality exist and persist? And this investigation is motivated to provide us with an economic explanation from micro‐perspective. Based upon some necessary assumptions and the definition of meta‐institution, it is argued in a simple mathematical model that equilibrium solution will always be inefficient institution even though the institutions themselves will experience various changes.
|Date of creation:||01 Aug 2012|
|Date of revision:|
|Contact details of provider:|| Postal: Ludwigstraße 33, D-80539 Munich, Germany|
Web page: https://mpra.ub.uni-muenchen.de
More information through EDIRC
When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:41606. 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: (Joachim Winter)
If references are entirely missing, you can add them using this form.