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{{Short description|Structure or mechanism of social order}}
{{other uses|Institution (disambiguation)}}
{{Distinguish|Institute}}
{{more citations needed|date=January 2012}}
{{Sociology}}
'''Institutions''' are humanly devised structures of rules and norms that shape and constrain individual behavior.<ref name=":0" /><ref name=":4" /><ref>{{Citation |title=Introduction: Theories of Institutions |date=2022 |url=https://www.cambridge.org/core/books/theories-of-institutions/introduction/AF82668CCBFCD679D220D83833A141B4 |work=Theories of Institutions |pages=1–15 |editor-last=Caporaso |editor-first=James A. |publisher=Cambridge University Press |doi=10.1017/9781139034142.001 |isbn=978-0-521-87929-3 |editor2-last=Jupille |editor2-first=Joseph}}</ref><ref>{{Cite web |year=2014 |title=Social Institutions |url=http://plato.stanford.edu/entries/social-institutions/ |access-date=30 January 2015 |website=[[Stanford Encyclopedia of Philosophy]] |publisher=Metaphysics Research Lab, Stanford University}}</ref> All definitions of institutions generally entail that there is a level of persistence and continuity.<ref name=":5" /> Laws, rules, social conventions and norms are all examples of institutions.<ref name=":6" /> Institutions vary in their level of formality and informality.<ref name=":7" /><ref name=":2" /> 

Institutions are a principal object of study in [[social sciences]] such as [[political science]], [[anthropology]], [[economics]], and [[sociology]] (the latter described by [[Émile Durkheim]] as the "science of institutions, their genesis and their functioning").<ref>Durkheim, Émile [1895] ''The Rules of Sociological Method'' 8th edition, trans. Sarah A. Solovay and John M. Mueller, ed. George E. G. Catlin (1938, 1964 edition), p. 45</ref> Primary or meta-institutions are institutions such as the [[family]] or [[money]] that are broad enough to encompass sets of related institutions. Institutions are also a central concern for [[law]], the formal mechanism for political rule-making and enforcement. Historians study and document the founding, growth, decay and development of institutions as part of political, economic and cultural history.

==Definition==
There are a variety of definitions of institutions.<ref>{{Citation |title=Definitions of Institutions |date=2022 |url=https://www.cambridge.org/core/books/theories-of-institutions/definitions-of-institutions/B8AC7AC4D91E4580DB99A1A99A1E44E0 |work=Theories of Institutions |pages=159–164 |editor-last=Caporaso |editor-first=James A. |publisher=Cambridge University Press |doi=10.1017/9781139034142.007 |isbn=978-0-521-87929-3 |editor2-last=Jupille |editor2-first=Joseph}}</ref><ref>{{Cite journal |last=Hillmann |first=Henning |date=2013 |title=Economic Institutions and the State: Insights from Economic History |url=http://dx.doi.org/10.1146/annurev-soc-071811-145436 |journal=Annual Review of Sociology |volume=39 |issue=1 |pages=251–273 |doi=10.1146/annurev-soc-071811-145436 |issn=0360-0572 |quote=there is little consensus about what exactly is meant by an institution. Still, most social scientists seem to hold the position that they would recognize an institution whenever they see one.}}</ref> These definitions entail varying levels of formality and organizational complexity.<ref name=":3">{{Cite journal|last=Calvert|first=Randall|date=1995|title=Rational Actors, Equilibrium and Social Institutions|url=https://www.researchgate.net/publication/247334096|journal=Explaining Social Institutions|pages=58–60}}</ref><ref name=":1" /> The most expansive definitions may include informal but regularized practices, such as handshakes, whereas the most narrow definitions may only include institutions that are highly formalized (e.g. have specified laws, rules and complex organizational structures).

According to [[Wolfgang Streeck]] and [[Kathleen Thelen]], institutions are in the most general sense "building blocks of social order: they represent socially sanctioned, that is, collectively enforced expectations with respect to the behavior of specific categories of actors or to the performance of certain activities. Typically they involve mutually related rights and obligations for actors."<ref name=":1">{{Cite book|last1=Streeck|first1=Wolfgang|url=https://books.google.com/books?id=s16hvDNAytQC|title=Beyond Continuity: Institutional Change in Advanced Political Economies|last2=Thelen|first2=Kathleen Ann|date=2005|publisher=Oxford University Press|isbn=978-0-19-928046-9|pages=9–11|language=en}}</ref> Sociologists and anthropologists have expansive definitions of institutions that include informal institutions. Political scientists have sometimes defined institutions in more formal ways where third parties must reliably and predictably enforce the rules governing the transactions of first and second parties.<ref name=":1" /> 

One prominent [[Rational choice institutionalism|Rational Choice Institutionalist]] definition of institutions is provided by [[Jack Knight (political scientist)|Jack Knight]] who defines institutions as entailing "a set of rules that structure social interactions in particular ways" and that "knowledge of these rules must be shared by the members of the relevant community or society."<ref name=":2">{{Cite book|last=Knight|first=Jack|url=http://worldcat.org/oclc/1127523562|title=Institutions and social conflict|date=1992|publisher=Cambridge University Press|isbn=978-0-511-52817-0|pages=1–3|oclc=1127523562}}</ref> Definitions by Knight and Randall Calvert exclude purely private idiosyncrasies and conventions.<ref name=":2" /><ref name=":3" /> 

[[Douglass North]] defines institutions as "rules of the game in a society"<ref>{{Cite journal|last=Faundez|first=Julio|date=2016|title=Douglass North's Theory of Institutions: Lessons for Law and Development|url=https://doi.org/10.1007/s40803-016-0028-8|journal=Hague Journal on the Rule of Law|language=en|volume=8|issue=2|pages=373–419|doi=10.1007/s40803-016-0028-8|s2cid=154288142|issn=1876-4053}}</ref> and "humanly devised constraints that structure political, economic and social interactions."<ref name=":0">{{Cite journal|last=North|first=Douglass C.|date=1991|title=Institutions|url=https://www.aeaweb.org/articles?id=10.1257/jep.5.1.97|journal=Journal of Economic Perspectives|language=en|volume=5|issue=1|pages=97–112|doi=10.1257/jep.5.1.97|issn=0895-3309}}</ref> Randall Calvert defines institution as "an equilibrium of behavior in an underlying game."<ref name=":3" /> This means that "it must be rational for nearly every individual to almost always adhere to the behavior prescriptions of the institution, given that nearly all other individuals are doing so."<ref name=":3" /> 

[[Robert Keohane]] defined institutions as "persistent and connected sets of rules (formal or informal) that prescribe behavioral roles, constrain activity, and shape expectations."<ref name=":7">{{Cite journal|last=Keohane|first=Robert O.|date=1988|title=International Institutions: Two Approaches|url=https://www.jstor.org/stable/2600589|journal=International Studies Quarterly|volume=32|issue=4|pages=379–396|doi=10.2307/2600589|jstor=2600589|issn=0020-8833}}</ref> [[Samuel P. Huntington]] defined institutions as "stable, valued, recurring patterns of behavior."<ref>{{Cite book |last=Huntington |first=Samuel P. |url=https://www.jstor.org/stable/j.ctt1cc2m34 |title=Political Order in Changing Societies |date=1996 |publisher=Yale University Press |isbn=978-0-300-11620-5 |pages=9 |jstor=j.ctt1cc2m34}}</ref> I 

[[Avner Greif]] and [[David D. Laitin|David Laitin]] define institutions "as a system of human-made, nonphysical elements – norms, beliefs, organizations, and rules – exogenous to each individual whose behavior it influences that generates behavioral regularities."<ref name=":4">{{Cite journal|last1=Greif|first1=Avner|last2=Laitin|first2=David D.|date=2004|title=A Theory of Endogenous Institutional Change|url=https://www.jstor.org/stable/4145329|journal=The American Political Science Review|volume=98|issue=4|pages=635|doi=10.1017/S0003055404041395|jstor=4145329|s2cid=1983672|issn=0003-0554}}</ref> Additionally, they specify that organizations "are institutional elements that influence the set of beliefs and norms that can be self-enforcing in the transaction under consideration. Rules are behavioral instructions that facilitate individuals with the cognitive task of choosing behavior by defining the situation and coordinating behavior."<ref name=":4" /> 

All definitions of institutions generally entail that there is a level of persistence and continuity.<ref name=":5">{{Cite book|url=https://www.cambridge.org/core/books/explaining-institutional-change/A5B2439A1AA6BF1A327C5FB4300EB150|title=Explaining Institutional Change: Ambiguity, Agency, and Power|date=2009|publisher=Cambridge University Press|isbn=978-0-521-11883-5|editor-last=Mahoney|editor-first=James|location=Cambridge|pages=4|doi=10.1017/cbo9780511806414|editor-last2=Thelen|editor-first2=Kathleen}}</ref> Laws, rules, social conventions and norms are all examples of institutions.<ref name=":6">{{Cite book|last=Knight|first=Jack|url=http://worldcat.org/oclc/1127523562|title=Institutions and social conflict|date=1992|publisher=Cambridge University Press|isbn=978-0-511-52817-0|pages=1–2|oclc=1127523562}}</ref> [[Organization|Organizations]] and institutions can be synonymous, but Jack Knight writes that organizations are a narrow version of institutions or represent a cluster of institutions; the two are distinct in the sense that organizations ''contain'' internal institutions (that govern interactions between the members of the organizations).<ref name=":2" /> 

An informal institution tends to have socially shared rules, which are unwritten and yet are often known by all inhabitants of a certain country, as such they are often referred to as being an inherent part of the culture of a given country. Informal practices are often referred to as "cultural", for example clientelism or corruption is sometimes stated as a part of the political culture in a certain place, but an informal institution itself is not cultural, it may be shaped by culture or behaviour of a given political landscape, but they should be looked at in the same way as formal institutions to understand their role in a given country. The relationship between formal and informal institutions is often closely aligned and informal institutions step in to prop up inefficient institutions. However, because they do not have a centre, which directs and coordinates their actions, changing informal institutions is a slow and lengthy process.<ref>{{Cite journal|last1=Helmke|first1=Gretchen|last2=Levitsky|first2=Steven|date=2004|title=Informal Institutions and Comparative Politics: A Research Agenda|url=https://www.jstor.org/stable/3688540|journal=Perspectives on Politics|volume=2|issue=4|pages=725–740|doi=10.1017/S1537592704040472|jstor=3688540|s2cid=14953172|issn=1537-5927}}</ref>

According to [[Geoffrey Hodgson|Geoffrey M. Hodgson]], it is misleading to say that an institution is a form of behavior. Instead, Hodgson states that institutions are "integrated systems of rules that structure social interactions."<ref>Hodgson (2015 p. 501), Journal of Institutional Economics (2015), 11: 3, 497–505.</ref>

== Examples ==
Examples of institutions include:
* [[Family]]: The family is the center of the child's life. The family teaches children cultural values and attitudes about themselves and others –  see [[sociology of the family]]. Children learn continuously from their environment. Children also become aware of class at a very early age and assign different values to each class accordingly.<ref>Macionis, John J., and Linda M. Gerber. Sociology. Toronto: Pearson Canada, 2011. p. 116.</ref>
* [[Religion]]: Some  religion is like an ethnic or cultural category, making it less likely for the individuals to break from religious affiliations and be more socialized in this setting. Parental religious participation is the most influential part of religious socialization—more so than religious peers or religious beliefs.<ref>{{cite journal | last1 = Vaidyanathan | first1 = B | year = 2011 | title = Religious resources or differential returns? early religious socialization and declining attendance in emerging adulthood | url = https://hal.archives-ouvertes.fr/hal-01589712/file/article.pdf| journal = Journal for the Scientific Study of Religion | volume = 50 | issue = 2| pages = 366–87 | doi = 10.1111/j.1468-5906.2011.01573.x }}</ref> See [[sociology of religion]] and [[civil religion]]. 
* [[Peer group]]s: A peer group is a social group whose members have interests, social positions and age in common. This is where children can escape supervision and learn to form relationships on their own. The influence of the peer group typically peaks during adolescence however peer groups generally only affect short term interests unlike the family which has long term influence.<ref>Macionis, John J., and Linda M. Gerber. Sociology. Toronto: Pearson Canada, 2011. p. 113.</ref>
* [[Economic system]]s: Economic systems dictate "acceptable alternatives for consumption", "social values of consumption alternatives", the "establishment of dominant values", and "the nature of involvement in consumption".<ref>{{cite journal | last1 = Denhart | first1 = R. B. | last2 = Jeffress | first2 = P. W. | year = 1971 | title = Social learning and economic behavior: The process of economic socialization | journal = American Journal of Economics and Sociology | volume = 30 | issue = 2| pages = 113–25 | doi=10.1111/j.1536-7150.1971.tb02952.x}}</ref> 
* [[Legal system]]s: Children are pressured from both parents and peers to conform and obey certain laws or norms of the group/community. Parents’ attitudes toward legal systems influence children's views as to what is legally acceptable.<ref>{{cite journal | last1 = Arnett | first1 = J. J. | year = 1995 | title = Broad and narrow socialization: The family in the context of a cultural theory | journal = Journal of Marriage and Family | volume = 57 | issue = 3| pages = 617–28 | doi=10.2307/353917| jstor = 353917 }}</ref> For example, children whose parents are continually in jail are more accepting of incarceration. See [[jurisprudence]], [[philosophy of law]], [[sociology of law]].
* [[Penal system]]s: The penal systems acts upon prisoners and the guards. Prison is a separate environment from that of normal society; prisoners and guards form their own communities and create their own social norms. Guards serve as "social control agents" who discipline and provide security.<ref name="Poole, E. D. 1981">{{cite journal | last1 = Poole | first1 = E. D. | last2 = Regoli | first2 = R. M. | year = 1981 | title = Alienation in prison: An examination of the work relation of prison guards | journal = Criminology | volume = 19 | issue = 2| pages = 251–70 | doi=10.1111/j.1745-9125.1981.tb00415.x}}</ref> From the view of the prisoners, the communities can be oppressive and domineering, causing feelings of defiance and contempt towards the guards.<ref name="Poole, E. D. 1981"/> Because of the change in societies, prisoners experience loneliness, a lack of emotional relationships, a decrease in identity and "lack of security and autonomy".<ref>{{cite journal | last1 = Carmi | first1 = A | year = 1983 | title = The role of social energy in prison | journal = Dynamische Psychiatrie | volume = 16 | issue = 5–6| pages = 383–406 }}</ref> Both the inmates and the guards feel tense, fearful, and defensive, which creates an uneasy atmosphere within the community.<ref name="Poole, E. D. 1981"/> See [[sociology of punishment]].
* [[Language]]: People learn to socialize differently depending on the specific language and culture in which they live.<ref name="language">Ochs, Elinor. 1988. ''[https://books.google.com/books?id=Zwc5AAAAIAAJ&printsec=frontcover#v=onepage&q&f=false Culture and language development: Language acquisition and language socialization in a Samoan village]''. Cambridge: Cambridge University Press.  Ochs, Elinor, and Bambi Schieffelin. 1984. Language Acquisition and Socialization: Three Developmental Stories and Their Implications. In ''Culture Theory: Essays on Mind, Self, and Emotion''. R. Shweder and R.A. LeVine, eds. pp. 276–320. New York: Cambridge University. Schieffelin, Bambi B. 1990. ''The Give and Take of Everyday Life: Language Socialization of Kaluli Children''. Cambridge: Cambridge University Press.</ref> A specific example of this is code switching.  This is where immigrant children learn to behave in accordance with the languages used in their lives: separate languages at home and in peer groups (mainly in educational settings).<ref>{{cite journal | last1 = Morita | first1 = N | year = 2009 | title = Language, culture, gender, and academic socialization | journal = Language and Education | volume = 23 | issue = 5| pages = 443–60 | doi=10.1080/09500780902752081| s2cid = 143008978 }}</ref> Depending on the language and situation at any given time, people will socialize differently.<ref name="J Harris">{{cite journal | last1 = Harris | first1 = J. R. | year = 1995 | title = Where is the child's environment? A group socialization theory of development | journal = Psychological Review | volume = 102 | issue = 3| pages = 458–89 | doi=10.1037/0033-295x.102.3.458}}</ref> See [[linguistics]], [[sociolinguistics]], [[sociology of language]].
* [[Mass media]]: The mass media are the means for delivering impersonal communications directed to a vast audience. The term ''media'' comes from Latin meaning, "middle", suggesting that the media's function is to connect people. The media can teach norms and values by way of representing symbolic reward and punishment for different kinds of behavior.<ref>McQuail (2005): McQuail’s Mass Communication Theory: Fifth Edition, London: Sage. 494</ref> Mass media has enormous effects on our attitudes and behavior, notably in regards to aggression.<ref name="Macionis, John J. 2011">Macionis, John J., and Linda M. Gerber. Sociology. Toronto: Pearson Canada, 2011. Print.</ref> See [[media studies]].
* [[Education]]al institutions – [[school]]s ([[Preschool education|preschool]], [[Primary education|primary/elementary]], [[Secondary education|secondary]], and [[Higher education|post-secondary/higher]] –see [[sociology of education]])
* [[Research]] community – [[academia]] and [[University|universities]]; [[research institute]]s – see [[sociology of science]]
* [[Medicine]] – [[hospital]]s and other [[health care]] institutions – see [[sociology of health and illness]], [[medical sociology]]
** [[Psychiatric hospital]]s ([[history of psychiatric institutions|history]])
* [[Military]] or [[paramilitary]] forces –  see [[military sociology]]
* Industry – [[business]]es, including [[corporation]]s – see [[financial institution]], [[factory]], [[capitalism]], [[division of labour]], [[social class]], [[industrial sociology]]
* [[Civil society]] or [[NGOs]] – [[charitable organization]]s; [[advocacy group]]s; [[Political party|political parties]]; [[think tank]]s; [[Virtual community|virtual communities]]

In an extended context:

* [[Art]] and [[culture]] (See also: [[culture industry]], [[critical theory]], [[cultural studies]], [[cultural sociology]])
* The [[nation-state]] – Social and political scientists often speak of the state as embodying all institutions such as schools, prisons, police, and so on. However, these institutions may be considered private or autonomous, whilst organised religion and family life certainly pre-date the advent of the nation state. The [[Neo-Marxist]] thought of [[Antonio Gramsci]], for instance, distinguishes  between institutions of political society (police, the army, legal system, etc.), which dominate directly and coercively—and civil society (the family, education system, etc.).

==Social science perspectives==
While institutions tend to appear to people in society as part of the natural, unchanging landscape of their lives, study of institutions by the social sciences tends to reveal the nature of institutions as [[social construction]]s, [[Cultural artifact|artifact]]s of a particular time, culture and society, produced by collective human choice, though not directly by individual intention. Sociology traditionally analyzed social institutions in terms of interlocking social [[role]]s and expectations.  Social institutions created and were composed of groups of roles, or expected behaviors.  The social function of the institution was executed by the fulfillment of roles.  Basic biological requirements, for reproduction and care of the young, are served by the institutions of marriage and family, for example, by creating, elaborating and prescribing the behaviors expected for husband/father, wife/mother, child, etc.{{citation needed|date=June 2017}}

The relationship of the institutions to human nature is a foundational question for the social sciences.  Institutions can be seen as "naturally" arising from, and conforming to, human nature—a fundamentally conservative view—or institutions can be seen as artificial, almost accidental, and in need of architectural redesign, informed by expert social analysis, to better serve human needs—a fundamentally progressive view.  [[Adam Smith]] anchored his economics in the supposed human "propensity to truck, barter and exchange".  Modern [[feminism|feminists]] have criticized traditional marriage and other institutions as element of an oppressive and obsolete [[patriarchy]]. The Marxist view—which sees human nature as [[dialectic materialism|historically 'evolving']] towards voluntary social cooperation, shared by some [[anarchism|anarchist]]s—is that supra-individual institutions such as the market and the state are incompatible with the individual liberty of a truly free society.

Economics, in recent years, has used [[game theory]] to study institutions from two perspectives.  Firstly, how do institutions survive and evolve?  In this perspective, institutions arise from [[Nash equilibrium|Nash equilibria]] of games.  For example, whenever people pass each other in a corridor or thoroughfare, there is a need for customs, which avoid collisions.  Such a custom might call for each party to keep to their own right (or left—such a choice is arbitrary, it is only necessary that the choice be uniform and consistent).  Such customs may be supposed to be the origin of rules, such as the rule, adopted in many countries, which requires driving automobiles on the right side of the road.

Secondly, how do institutions affect behaviour?  In this perspective, the focus is on behaviour arising from a given set of institutional rules.  In these models, institutions determine the rules (i.e. strategy sets and utility functions) of games, rather than arise as equilibria out of games. [[Douglass North]] argues, the very emergence of an institution reflects behavioral adaptations through his application of [[increasing returns]].<ref>{{Cite journal|last=Pierson|first=Paul|date=2000-01-01|title=Increasing Returns, Path Dependence, and the Study of Politics|journal=The American Political Science Review|volume=94|issue=2|pages=251–67|doi=10.2307/2586011|jstor=2586011|hdl=1814/23648|s2cid=154860619|hdl-access=free}}</ref> Over time institutions develop rules that incentivize certain behaviors over others because they present less risk or induce lower cost, and establish [[Path dependence|path dependent]] outcomes. For example, the [[Cournot duopoly]] model is based on an institution involving an auctioneer who sells all goods at the market-clearing price.  While it is always possible to analyze behaviour with the institutions-as-equilibria approach instead, it is much more complicated.{{citation needed|date=June 2017}}

In [[political science]], the effect of institutions on behavior has also been considered from a [[meme]] perspective, like game theory borrowed from biology. A "memetic institutionalism" has been proposed, suggesting that institutions provide selection environments for political action, whereby differentiated retention arises and thereby a Darwinian evolution of institutions over time.  [[Public choice theory]], another branch of economics with a close relationship to political science, considers how government policy choices are made, and seeks to determine what the policy outputs are likely to be, given a particular political decision-making process and context. [[Credibility thesis]]  purports that institutions emerge from intentional institution-building but never in the originally intended form.<ref name=ho2014>{{cite journal |last= Ho |first= Peter |date=September 2014 |title= The 'credibility thesis' and its application to property rights: (In)Secure land tenure, conflict and social welfare in China |journal= Land Use Policy |volume=40 |pages=13–27 |doi=10.1016/j.landusepol.2013.09.019 }}</ref> Instead, institutional development is [[endogeneity (econometrics)|endogenous]] and [[Spontaneous order|spontaneously ordered]] and institutional persistence can be explained by their credibility,<ref name=Grabel>{{cite journal |last= Grabel |first= Ilene |title= The political economy of 'policy credibility': the new-classical macroeconomics and the remaking of emerging economies |journal= Cambridge Journal of Economics |volume=24 |issue=1 |pages=1–19 |doi= 10.1093/cje/24.1.1|year=2000|citeseerx= 10.1.1.366.5380 }}</ref> which is provided by the function that particular institutions serve.

In history, a distinction between eras or periods, implies a major and fundamental change in the system of institutions governing a society.  Political and military events are judged to be of historical significance to the extent that they are associated with changes in institutions.  In European history, particular significance is attached to the long transition from the [[Feudalism|feudal]] institutions of the [[Middle Ages]] to the [[Modern world|modern]] institutions, which govern contemporary life.

===Theories of institutional emergence===
Scholars have proposed different approaches to the emergence of institutions, such as spontaneous emergence, evolution and social contracts. Some scholars argue that institutions can emerge spontaneously without intent as individuals and groups converge on a particular institutional arrangement.<ref>{{Cite journal|last=Sugden|first=Robert|date=1989|title=Spontaneous Order|journal=Journal of Economic Perspectives|language=en|volume=3|issue=4|pages=85–97|doi=10.1257/jep.3.4.85|issn=0895-3309|doi-access=free}}</ref><ref name=":32">{{Cite journal|last=Calvert|first=Randall|date=1995|title=Rational Actors, Equilibrium and Social Institutions|url=https://www.researchgate.net/publication/247334096|journal=Explaining Social Institutions|pages=80–82}}</ref> Other approaches see institutional development as the result of evolutionary or learning processes. Other scholars see institutions as being formed through social contracts<ref>{{Cite book|last=Hechter|first=Michael|title=Social Institutions|chapter-url=https://www.taylorfrancis.com/chapters/edit/10.4324/9781351328807-3/emergence-cooperative-social-institutions-michael-hechter|chapter=The Emergence of Cooperative Social Institutions|date=1990|pages=13–34|publisher=Routledge|isbn=978-1-351-32880-7|language=en|doi=10.4324/9781351328807-3}}</ref> or rational purposeful designs.<ref>{{Cite journal|last1=Koremenos|first1=Barbara|last2=Lipson|first2=Charles|last3=Snidal|first3=Duncan|date=2001|title=The Rational Design of International Institutions|url=https://www.jstor.org/stable/3078615|journal=International Organization|volume=55|issue=4|pages=761–799|doi=10.1162/002081801317193592|jstor=3078615|s2cid=41593236|issn=0020-8183}}</ref> 

===Theories of institutional change===
In order to understand why some institutions persist and other institutions only appear in certain contexts, it is important to understand what drives institutional change.
Acemoglu, Johnson and Robinson assert that institutional change is endogenous. They posit a framework for institutional change that is rooted in the distribution of resources across society and preexisting political institutions. These two factors determine de jure and de facto political power, respectively, which in turn defines this period's economic institutions and next period's political institutions. Finally, the current economic institutions determine  next period's distribution of resources and the cycle repeats.<ref>Acemoglu, Daron, Simon Johnson, and James A. Robinson. "Institutions as a fundamental cause of long-run growth." Handbook of Economic Growth 1 (2005): 385–472.</ref> Douglass North attributes institutional change to the work of "political entrepreneurs", who see personal opportunities to be derived from a changed institutional framework. These entrepreneurs weigh the expected costs of altering the institutional framework against the benefits they can derive from the change.<ref>North, D. C. (1992). Transaction costs, Institutions, and Economic Performance (pp. 13–15). San Francisco, CA: ICS Press.</ref> North describes institutional change as a process that is extremely incremental, and that works through both formal and informal institutions. Lipscy argues that patterns of institutional change vary according to underlying characteristics of issue areas, such as network effects.<ref name=Lipscy>{{cite journal |last= Lipscy |first= Phillip |title= Explaining Institutional Change: Policy Areas, Outside Options, and the Bretton Woods Institutions |journal= American Journal of Political Science |volume=59 |issue=2 |pages=341–356 |doi= 10.1111/ajps.12130|year=2015|citeseerx= 10.1.1.595.6890 }}</ref> 

In a 2020 study, Johannes Gerschewski created a two-by-two typology of institutional change depending on the sources of change (exogenous or endogenous) and the time horizon of change (short or long).<ref>{{Cite journal|last=Gerschewski|first=Johannes|date=2020|title=Explanations of Institutional Change: Reflecting on a "Missing Diagonal"|journal=American Political Science Review|volume=115|language=en|pages=218–233|doi=10.1017/S0003055420000751|issn=0003-0554|doi-access=free}}</ref> In another 2020 study, [[Erik Voeten]] created a two-by-two typology of institutional design depending on whether actors have full agency or are bound by structures, and whether institutional designs reflect historical processes or are optimal equilibriums.<ref>{{Cite journal|author-link1=Erik Voeten|last=Voeten|first=Erik|date=2019-05-11|title=Making Sense of the Design of International Institutions|journal=Annual Review of Political Science|language=en|volume=22|issue=1|pages=147–163|doi=10.1146/annurev-polisci-041916-021108|issn=1094-2939|doi-access=free}}</ref>

====Institutional persistence====
North argues that because of the preexisting influence that existing organizations have over the existing framework, change that is brought about is often in the interests of these organizations. This produces a phenomenon called path dependence, which states that institutional patterns are persistent and endure over time.<ref>Transaction costs, Institutions, and Economic Performance (pp. 13–15). San Francisco, CA: ICS Press.</ref> These paths are determined at critical junctures, analogous to a fork in the road, whose outcome leads to a narrowing of possible future outcomes. Once a choice is made during a critical juncture, it becomes progressively difficult to return to the initial point where the choice was made. James Mahoney studies path dependence in the context of national regime change in Central America and finds that liberal policy choices of Central American leaders in the 19th century was the critical juncture that led to the divergent levels of development that we see in these countries today.<ref>Mahoney, James. "[http://siteresources.worldbank.org/INTAFRSUMESSD/Resources/1729402-1150389437293/Path_Dependent_Explanations_Mahoney.pdf Path-dependent explanations of regime change: Central America in comparative perspective]." Studies in Comparative International Development 36.1 (2001): 111–41.</ref> The policy choices that leaders made in the context of liberal reform policy led to a variety of self-reinforcing institutions that created divergent development outcomes for the Central American countries.

Though institutions are persistent, North states that paths can change course when external forces weaken the power of an existing organization. This allows other entrepreneurs to affect change in the institutional framework. This change can also occur as a result of gridlock between political actors produced by a lack of mediating institutions and an inability to reach a bargain.<ref>North, Douglass Cecil. Transaction costs, institutions, and economic performance. San Francisco, CA: ICS Press, 1992.</ref> Artificial implementation of institutional change has been tested in political development but can have unintended consequences. North, Wallis, and Weingast divide societies into different social orders: open access orders, which about a dozen developed countries fall into today, and limited access orders, which accounts for the rest of the countries. Open access orders and limited access orders differ fundamentally in the way power and influence is distributed. As a result, open access institutions placed in limited access orders face limited success and are often coopted by the powerful elite for self-enrichment. Transition to more democratic institutions is not created simply by transplanting these institutions into new contexts, but happens when it is in the interest of the dominant coalition to widen access.<ref>North, Douglass C. Limited access orders in the developing world: A new approach to the problems of development. Vol. 4359. World Bank Publications, 2007.</ref>

====Natural selection====
[[Ian Lustick]] suggests that the social sciences, particularly those with the institution as a central concept, can benefit by applying the concept of [[natural selection]] to the study of how institutions change over time.<ref name=Lustick>{{cite journal|last=Lustick|first=Ian|title=Institutional Rigidity and Evolutionary Theory: Trapped on a Local Maximum|journal=Cliodynamics|date=2011|volume=2|issue=2|url=https://cloudfront.escholarship.org/dist/prd/content/qt43w3q5kp/qt43w3q5kp.pdf}}</ref> By viewing institutions as existing within a [[fitness landscape]], Lustick argues that the gradual improvements typical of many institutions can be seen as analogous to hill-climbing within one of these fitness landscapes. This can eventually lead to institutions becoming stuck on [[local maxima]], such that for the institution to improve any further, it would first need to decrease its overall fitness score (e.g., adopt policies that may cause short-term harm to the institution's members). The tendency to get stuck on local maxima can explain why certain types of institutions may continue to have policies that are harmful to its members or to the institution itself, even when members and leadership are all aware of the faults of these policies.

As an example, Lustick cites Amyx's analysis of the gradual rise of the Japanese economy and its seemingly sudden reversal in the so-called [[Lost Decade (Japan)|"Lost Decade"]]. According to Amyx, Japanese experts were not unaware of the possible causes of Japan's economic decline. Rather, to return Japan's economy back to the path to economic prosperity, policymakers would have had to adopt policies that would first cause short-term harm to the Japanese people and government.  Under this analysis, says Ian Lustick, Japan was stuck on a "local maxima", which it arrived at through gradual increases in its fitness level, set by the economic landscape of the 1970s and 80s. Without an accompanying change in institutional flexibility, Japan was unable to adapt to changing conditions, and even though experts may have known which changes the country needed, they would have been virtually powerless to enact those changes without instituting unpopular policies that would have been harmful in the short-term.<ref name=Lustick /><ref>{{cite book|last=Amyx|first=Jennifer|title=Japan's Financial Crisis: Institutional Rigidity and Reluctant Change|date=2004|publisher=Princeton University Press|pages=17–18|url=https://books.google.com/books?id=ctV2rp9ad6QC|isbn=978-0691114477}}</ref>

The lessons from Lustick's analysis applied to Sweden's economic situation can similarly apply to the political gridlock that often characterizes politics in the United States. For example, Lustick observes that any politician who hopes to run for elected office stands very little to no chance if they enact policies that show no short-term results. Unfortunately, there is a mismatch between policies that bring about short-term benefits with minimal sacrifice, and those that bring about long-lasting change by encouraging institution-level adaptations.{{citation needed|date=June 2017}}

There are some criticisms to Lustick's application of natural selection theory to institutional change. Lustick himself notes that identifying the inability of institutions to adapt as a symptom of being stuck on a local maxima within a fitness landscape does nothing to solve the problem. At the very least, however, it might add credibility to the idea that truly beneficial change might require short-term harm to institutions and their members. David Sloan Wilson notes that Lustick needs to more carefully distinguish between two concepts: multilevel selection theory and evolution on multi-peaked landscapes.<ref name=Lustick /> Bradley Thayer points out that the concept of a fitness landscape and local maxima only makes sense if one institution can be said to be "better" than another, and this in turn only makes sense insofar as there exists some objective measure of an institution's quality. This may be relatively simple in evaluating the economic prosperity of a society, for example, but it is difficult to see how objectively a measure can be applied to the amount of freedom of a society, or the quality of life of the individuals within.<ref name=Lustick />

==Institutionalization==
{{main|Institutionalisation}}
The term "institutionalization" is widely used in social theory to refer to the process of embedding something (for example a concept, a social role, a particular value or mode of behavior) within an organization, social system, or society as a whole. The term may also be used to refer to committing a particular individual to an institution, such as a mental institution. To this extent, "institutionalization" may carry negative connotations regarding the treatment of, and damage caused to, vulnerable human beings by the oppressive or corrupt application of inflexible systems of social, medical, or legal controls by publicly owned, private or not-for-profit organizations.

The term "institutionalization" may also be used in a political sense to apply to the creation or organization of governmental institutions or particular bodies responsible for overseeing or implementing policy, for example in the welfare or development.

==See also==
{{Wiktionary|institution}}
{{div col}}
* [[Academic institution]]
* [[Actor analysis]]
* [[Base and superstructure]]
* [[Cultural reproduction]]
* [[Dispositif]]
* [[Historical institutionalism]]
* [[Ideological state apparatus]]
* [[Institute]]
* [[Institutional abuse]]
* [[Institutional economics]]
* [[Institutional logic]]
* [[Institutional memory]]
* [[Institutional racism]]
* [[Institutionalist political economy]]
* [[Linkage institution]]
* [[List of oldest institutions in continuous operation]]
* [[State (polity)|State]], [[Nation]], [[country]], [[Sovereign state]]
{{div col end}}

==References==
{{reflist}}
==Further reading==

* Berger, P. L. and T. Luckmann (1966), ''The Social Construction of Reality: A Treatise in the Sociology of Knowledge'', Anchor Books, Garden City, NY.
* Chang, Ha-Joon (ed.) (2007), [https://web.archive.org/web/20090630032801/http://anthempress.com/product_info.php?products_id=307&osCsid=iajhkc88k1v6viq3epuh15sht2 ''Institutional Change and Economic Development''], Anthem Press.
* Greif, Avner (2006), ''Institutions and the Path to the Modern Economy: Lessons from Medieval Trade'', Cambridge University Press, {{ISBN|978-0-521-67134-7}}
* North, D. C. (1990), ''[https://books.google.com/books?id=oFnWbTqgNPYC&printsec=frontcover#v=onepage&q&f=false Institutions, Institutional Change and Economic Performance]''. Cambridge University Press, Cambridge.
* Schotter, A. (1981), ''The Economic Theory of Social Institutions''. Cambridge University Press, Cambridge.
* Gielen, P. (ed.  2013), ''Institutional Attitudes. Instituting Art in a Flat World.'' Valiz: Amsterdam.

*[[William H. Whyte|Whyte, William H.]], ''[[The Organization Man]]'', Doubleday Publishing, 1956. ([http://www.writing.upenn.edu/~afilreis/50s/whyte-main.html excerpts from Whyte's book])
* "[http://plato.stanford.edu/entries/social-institutions/ Social Institutions]," Stanford Encyclopedia of Philosophy

{{Authority control}}

[[Category:Comparative politics]]
[[Category:Political science terminology]]
[[Category:Social institutions| ]]