Economic Themes (2009) 47 (2) 8, 127-142
Zoran Stefanović
Abstract: Economic orthodoxy conceives market as universal and superior mechanism of economic rationality. Institutional economics challenges this position. Existence of transaction costs disturbs market allocation of resources and generates demand for non–market institutions. The approach to institutions as participators in resource allocation is affirmed in new institutional economics. The present paper makes an insight into the genesis and contemporary contributions to aforementioned approach within this school of thought.
Keywords: market; institutions; transaction costs; new institutional economics
MARKET AND INSTITUTIONS: COMPLEMENTARY ECONOMIC MECHANISMS – THE APPROACH OF NEW INSTITUTIONAL ECONOMICS
Zoran Stefanović
Abstract: Economic orthodoxy conceives market as universal and superior mechanism of economic rationality. Institutional economics challenges this position. Existence of transaction costs disturbs market allocation of resources and generates demand for non–market institutions. The approach to institutions as participators in resource allocation is affirmed in new institutional economics. The present paper makes an insight into the genesis and contemporary contributions to aforementioned approach within this school of thought.
Keywords: market; institutions; transaction costs; new institutional economics
