Beliefs, institutions and norms in a complex system

Lee J. Alston

Chapter 8 in Handbook on Institutions and Complexity, 2025, pp 159-173 from Edward Elgar Publishing

Abstract: I explore the interplay among beliefs, institutions, and norms within complex systems. Uncertainty means that we are unable to fully know the probabilities associated with the outcomes from institutions. Beliefs about the expected outcomes shape the institutions that we adopt. Because our beliefs are sticky, we do not change our fundamental institutions readily. Beliefs and institutions thus co-evolve in many instances. I draw on historical examples from Iceland, Portugal, Europe, and the Arab world, and the establishment of the US Constitution to show how understanding the role of beliefs in institutional change requires an understanding of complexity theory. I offer insights into how individuals and societies manage uncertainty that challenges existing institutions and norms, and at times fosters adaptive governance. It underscores the importance of acknowledging the inevitability of complexity and adaptation in a non-ergodic world.

Keywords: Beliefs; Institutions; Complexity; Emergent properties; Culture; Coevolution (search for similar items in EconPapers)
Date: 2025
ISBN: 9781035309719
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