Paper Summary:

This paper discusses new institutional economics ("NIE), which is based on economic research using social theory, and which is the research field of the 2009 Noble Prize for Economics Oliver E. Williamson (2000). The writer reviews two key concepts focused on by Williamson, the four levels social analysis and the application of the lens of contract. Each of the levels of social theory presented and the utilization of the lens of contract reveal various social components of decision systems and emphasize the significance of social components to economic phenomena and vice versa. As NIE developed, there is growing prominence of the private sectors in economic trends, the intimacy of social factors to the economic decisions that drive industries, contracts, policies and institutions.

Outline:
Abstract
Introduction
New Institutional Economics and Social Theory
NIE Overview
Social Frameworks
Evaluation
Implications
Lens of Contract and NIE Reconceptualization
Overview
Reconceptualization and Lens of Contract Prevalence
Conclusion

From the Paper:

"NIE reengineers neo-classical economics to incorporate theory on institutions into economics, discarding instrumental rationality but continues to consider assumptions about scarcity and competition. In essence, the conjecture is that the market effectiveness and efficiency can be realized through the positive operation of institutions facilitating private transactions. NIE is considered to be one of the leading theoretical perspectives for social and economic studies. It combines organization theory, law, politics and sociology into economics creating a dynamic platform for investigating the relationship of individual, institutions and societies as a whole."

Sample of Sources Used:

• Brousseau, Eric and Glachant, Jean-Michel (2008). New Institutional Economics: A Guidebook. Cambridge University Press
• Furubotn, Eirik G. and Richter, Rudolf (2005). Institutions and Economic Theory: The Contribution of the New Institutional Economics. University of Michigan
• Lambsdorff, J. (2004). The New Institutional Economics of Corruption. London: Routledge
• Menard, Claude and Ghertman, Michel (2009). Regulation, Deregulation and Reregulation: Institutional Perspectives (Advances in New Institutional Analysis). London: Edward Elgar Publishing
• Menard, Claude and Shirley, Mary M. (2008). Handbook of New Institutional Economics. New York: Springer

Visitors who viewed this Analytical Essay also liked these:

• Case Study # 115089 : "Concepts of Organizational Development"
• Descriptive Essay # 117617 : "Key Concepts and Terminologies of Business Management"
• Term Paper # 149181 : "Concepts of Adlerian Therapy"

APA Citation:

MLA Citation: