This paper surveys alternative approaches to the emergence and evolution of institutions. The challenge is to develop frameworks capable of capturing both stability and change. We follow a “descaling” approach to show how founding assumptions about economics—namely, alternative assumptions about individual rationality and the role of social efficiency—influence our understanding of the drivers of institutional evolution. We then contrast two families of institutional theory. In the first, institutions are viewed as rules imposed on individuals and the focus is on the strategic games among coalitions that aim to promote or block new rules. In the second, institutions are viewed as shared beliefs; here the idea is to analyze how equilibria that are self-enforcing (in terms of mutual expectations about others’ behaviors) can collapse and so induce switching to another equilibrium. Finally, we discuss the political economy literature that examines institutional transitions to a market economy, and we identify long-term drivers as well as short-term political barriers to institutional reforms.
This special issue of Network Industries Quarterly is dedicated to the greening of infrastructure assets. Despite the unprecedented challenges brought about by the COVID-19 pandemic, the European Commission has reaffirmed [...]
This deliverable consists of an introduction and two main parts. Each part consists of two sections:Data exchange and interoperability and Demand-side flexibility. The two main topics of this interim deliverable, [...]
The digitalization of the electricity infrastructure is transforming the power industry and enabling its decarbonization and decentralization. In the electricity sector, digitalization is not a novelty but a process that [...]
The assumption that electricity consumers have no alternative but the grid for their electricity needs is currently being challenged by affordable Behind-The-Meter (BTM) technologies such as distributed PV systems and [...]