Institutional Economics: Foundations and Economic Analysis

Traditional economics often assumes markets operate in a vacuum, but real-world outcomes are driven by the formal and informal rules of the game. This course introduces you to institutional economics, helping you understand how laws, customs, and organizations shape human behavior and market outcomes. By developing an institutional mindset, you will learn to look beyond simple supply and demand curves to evaluate the hidden forces that drive economic decisions. You will gain the analytical tools to evaluate transaction costs, property rights, contract enforcement, and how modern digital platforms act as new institutional frameworks in the contemporary economy. What you'll learn: Understand the core concepts of institutional economics, including formal rules, informal constraints, and enforcement mechanisms; Analyze transaction costs and their impact on market efficiency and organizational boundaries; Evaluate property rights theory and how it applies to both physical assets and modern intellectual property; Examine the role of contracts, opportunistic behavior, and governance structures in economic transactions; Explore how digital platforms and modern technology function as new institutions in the digital age; Apply institutional analysis to real-world economic phenomena and policy decisions. The course begins with foundational definitions of institutions, transaction costs, and property rights before guiding you through the evolution of economic systems. You will progress through written explanations and conceptual exercises designed to build your practical analytical skills. This text-only course is designed specifically for beginners, requiring no advanced mathematics or prior background in economics. Start reading today to build a deeper, more realistic understanding of how modern economies actually function.