Evolution of theories of new institutional economics

Abstract

Thearticleexploresthedevelopmentofscholarlyviewsonthenatureofthenotion“institutionalism”.Theresearch findings show that some elements of the institutional system have a quite dynamic character (for example, laws, statutory acts, agreements, etc.), while others are objective by nature and make up the full range of the superstructure of economic relations (for example, market, competition, property, etc.), in other words, are hardly responsive to influences. The article provides reasons for the actions and functions of factors that make up the institutional system. It makes a distinction between the notions “institution” and “institute”. It also examines the current theories of institutionalism to define the transition of economy to the market system and, further on, to post-industrial society. It considers abstract definitions of the basic categories of institutionalism and neo-institutionalism. The article also explores scholars’ views on the nature, the structure and future of modern institutionalism in economic science. It outlines basic theories of neo-institutional economics. It emphasizes that the game theory has gained wide currency in neo-institutional research. It describes the process of the formation of institutions