Market institutions and economic evolution

Brian Loasby

Journal of Evolutionary Economics, 2000, vol. 10, issue 3, 297-309

Abstract: Our cognitive limitations cause us to rely on institutions to guide reasonable behaviour; market institutions reduce the costs of search, negotiation, and monitoring entailed in making single transactions. The making of markets requires an investment of immaterial capital, the major share of which typically is provided by those who expect to be very active on one side of the market. This `external organisation' provides producers with information for the development of new products; by simplifying transactions it also allows consumers greater scope for developing consumption capabilities. Thus the evolution of institutions guides the evolution of goods and services.

Keywords: Institutions; -; Markets; -; Producers; -; Consumers; -; Evolution (search for similar items in EconPapers)
JEL-codes: D1 D2 L1 L2 O1 (search for similar items in EconPapers)
Date: 2000-01-10
References: Add references at CitEc
Citations: View citations in EconPapers (30) Track citations by RSS feed

Downloads: (external link)
http://link.springer.de/link/service/journals/00191/papers/0010003/00100297.pdf (application/pdf)
Access to the full text of the articles in this series is restricted

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:spr:joevec:v:10:y:2000:i:3:p:297-309

Ordering information: This journal article can be ordered from
http://www.springer.com/economics/journal/191/PS2

Access Statistics for this article

Journal of Evolutionary Economics is currently edited by Uwe Cantner, Elias Dinopoulos, Horst Hanusch and Luigi Orsenigo

More articles in Journal of Evolutionary Economics from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().