Complex Systems Characteristics and Theoretical Development for Analysis Inside Institutions

F. Gregory Hayden

Journal of Economic Issues, 2016, vol. 50, issue 2, 398-405

Abstract: Institutions are patterns of social activity that design roles for persons as social actors, service and are serviced by other institutions, and operate as systems. The main activity inside institutions that is utilized to complete the service responsibilities — which includes production — is the formulation and enforcement of rules, regulations, and requirements. The concepts of closed systems, endogeneity, and self-organized systems have been offered as being relevant for the analysis of institutional systems. As explained here, those concepts are inconsistent with the processing of real-world institutions. When conducting analysis inside institutions, it is necessary to recognize, observe, and model the rules, regulations, and requirements which are formulated to be consistent with the normative belief, technological, and ecological criteria of institutions. Generally, social scientists have emphasized belief criteria, and ignored technological and ecological criteria.

Date: 2016
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DOI: 10.1080/00213624.2016.1176488

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