How Institutions Decay: Towards an Endogenous Theory

Economics and Philosophy (forthcoming)
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When organizations solve collective action problems or realize values, they do so by means of institutions. These are commonly regarded as self-stabilizing. Yet, they can also be subject to endogenous processes of decay, or so we argue. We explain this in terms of psychological and cultural processes, which can change even if the formal structures remain unchanged. One key implication is that the extent to which norms, values, and ideals motivate individuals to comply with institutions is limited.

Author Profiles

Frank Hindriks
University of Groningen
Lisa Maria Herzog
University of Groningen


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