The purpose of this article is to provide an alternative antitrust model to the mainstream model that is used in competition policy. I call it the InstitutionalEvolutionary Antitrust Model. In order to construct an antitrust model one needs both empirical knowledge and considerations of how to adequately deal with norms. The analysis of competition as an evolutionary process that unfolds within legal rules provides the empirical foundation for the model. The development of the normative dimension involves the elaboration of a (...) comparative approach. Building on those foundations the main features of the Institutional-Evolutionary Model are sketched out and it is shown that its use leads to systematically different outcomes and conclusions than the dominant antitrust ideals. (shrink)

This paper explores the relationship between federalism and individual liberty. It is shown that a complete treatment of the relationship between federalism and individual liberty should consider two countervailing effects. On the one hand, a federalist structure enhances individual liberty by enlarging the choice set of the citizens. On the other hand, however, a federalist system leads to institutional diversity, a fact that per se leads to higher exit costs, which a citizen must bear if he or she decides to (...) change jurisdictions. This effect on individual liberty is a negative one, since a consequence of every increase in the exit costs is a decrease of individual liberty. The optimum range of diversity of jurisdictions is shown to lie where the two effects counterbalance each other. (shrink)

The article provides an overview of the basic concepts and principles of the theory of institutions as well as of the mechanisms of emergence and evolution of social institutions. It introduces a distinction between formal and informal institutions based on the the criterion of the enforcement agency of institutions. Finally it discusses the problem of path dependence.

The idea that social and political institutions can be designed in order to achieve specific human ends goes back, at least, to Plato’s presentation of the appropriate form of the just city-state i...

In this research, an agent-based simulation seeks to discuss the tragedy of the commons, collective intelligence and institutions developed by social groups. The concept of the tragedy of the commons states that you can always expect environmental degradation when many individuals freely exploit a scarce resource of common use. Hardin proposes two alternatives to deal with it: state or privatized administration. However, it is possible another alternative of self-coordination when the social groups are small. That is, the tragedy of the (...) commons could be faced when the synergy within the group—collective intelligence—develops. The focus of this paper is to analyze small groups who promote their coordination to achieve collective goals, aimed at the preservation and perpetuation of scarce natural resources of common use. The results of this research show that the extreme exhaustion of the environment and consequent dissolution of the group that depends on it, is easily observed in many circumstances. However, in small groups, the self-coordination through the development of strong institutions may avoid an eventual tragic outcome of total environment degradation. Additionally, it has been found that social identity influences the behavior of the individuals, determining the social structures. (shrink)

This book consists of a dialogue between two interlocutors, Pablo and a student, who discuss a great range of issues in social philosophy and political theory, and in particular, the emergence, working properties and economic effects of institutions. It uses the dialogical form to make philosophy more accessible, but also to show how ideas develop through intellectual interaction. The fact that one of the interlocutors is the "student" in a place in the real world makes the dialogue quasi-fictive in character (...) and enables the active engagement of the reader. After all, we are all philosophers and we develop our own philosophy by exchanging views and arguments. The dialogue form is and should remain the principal form of philosophizing, since ideas, like butterflies, do not merely exist – they develop. This is certainly the case in actual philosophical interaction, and it can be the case in written philosophical exposition. Although the dialogue does not presuppose prior acquaintance with the respective philosophical and social scientific literature under discussion in this book, it makes arguments more accessible, and conveys the feeling that there are no definite solutions to philosophical problems. (shrink)

Most recent developments in the study of social dilemmas give an increasing amount of attention to cognition, belief systems, valuations, and language. However, developments in this field operate almost entirely under epistemological assumptions which only recognize the instrumental form of rationality and deny that “value judgments” or “moral questions” have cognitive content. This standpoint erodes the moral aspect of the choice situation and obstructs acknowledgment of the links connecting cognition, inner growth, and moral reasoning, and the significance of such links (...) in reaching cooperative solutions to many social dilemmas. Concurrently, this standpoint places the role of communication and mutual understanding in promoting cooperation in morally relevant conflicts of action in a rather mysterious situation. This paper draws on Habermas’s critique of instrumental action, and on the most recent developments in institutional and behavioral economics with a view to enhancing our knowledge of the interventions used to cope with social dilemmas. We conclude the paper with a brief presentation of a research strategy for examining the capacity of alternative developmental models to predict dissimilar choices under similar incentive conditions in social dilemmas. (shrink)

There are three main approaches to scientific explanation in the philosophical literature. The unification approach claims that science explains by fitting the particular facts and events within a general theoretical framework. The mechanistic approach claims that science explains by identifying mechanisms. According to the manipulationist approach an explanation ought to be such that it can be used to answer a “what-if-things-had-been-different question.” The article examines whether these three approaches are compatible or not in the case of the social sciences, and (...) it concludes by defending explanatory pluralism. (shrink)