Institutions and Economic Theory

The Contribution of the New Institutional Economics
2nd Edition
Eirik Furubotn and Rudolf Richter
Explores the NIE with a critical assessment of its theoretical contributions


This second edition assesses some of the major refinements, extensions, and useful applications that have developed in neoinstitutionalist thought in recent years. More attention is given to the overlap between the New Institutional Economics and developments in economic history and political science. In addition to updated references, new material includes analysis of parallel developments in the field of economic sociology and its attacks on representatives of the NIE as well as an explanation of the institution-as-an-equilibrium-of-game approach.

Already an international best seller, Institutions and Economic Theory is essential reading for economists and students attracted to the NIE approach. Scholars from such disciplines as political science, sociology, and law will find the work useful as the NIE continues to gain wide academic acceptance. A useful glossary for students is included.

Eirik Furubotn is Honorary Professor of Economics, Co-Director of the Center for New Institutional Economics, University of Saarland, Germany and Research Fellow, Private Enterprise Research Center, Texas A&M University.

Rudolph Richter is Professor Emeritus of Economics and Director of the Center for New Institutional Economics, University of Saarland, Germany.

Praise / Awards

  • "This is an important, timely, and complete update on the rapidly developing field of the New Institutional Economics. From transactions costs to contract theory to property rights to the formation of the state, it is all here. Key theoretical arguments and insights provided from the latest research are summarized succinctly and rigorously. This volume is a major addition to the literature on the roles of transaction costs and institutions in understanding behavior."
    —Gary Libecap, Professor of Entrepreneurial Studies, Economics, and Law University of Arizona

  • "The second edition of the influential Institutions and Economic Theory provides a remarkably lucid and conceptually sophisticated account of the rapidly growing New Institutional Economics literature. It provides a highly readable analytic overview for graduate students and faculty interested in learning about the past and present of the new institutionalist approach in economics"
    —Victor Nee, Goldwin Smith Professor and Director of the Center for the Study of Economy and Society , Cornell University

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Copyright © 2005, University of Michigan. All rights reserved.

Product Details

  • 672 pages.
Available for sale worldwide

  • Ebook
  • 2010
  • Available
  • 978-0-472-02714-9

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