week1_Kelemtrans_Pengantar

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07.02.2023 Views

• Informal institutionsInformal institutions are deeply embedded values,norms, customs, and traditions. These are powerfulconditioners of behavior but change only very slowly.However, when change does occur in an informalinstitution, behavior changes rapidly and profoundly.One could argue that this change was brought on onlyover a long period of 20 – 30 years.

• Formal institutionsFormal institutions are Williamson’s second category.These rules are codified as laws, regulations, andadministrative orders, and include for example, suchthings as property rights, judicial orders, andadministrative statutes. Formal institutions changemore quickly than informal ones, but still over fairlylong periods such as decades unless there are radicalchanges in the environment within which the rules orinstitutions apply.

• Formal institutions

Formal institutions are Williamson’s second category.

These rules are codified as laws, regulations, and

administrative orders, and include for example, such

things as property rights, judicial orders, and

administrative statutes. Formal institutions change

more quickly than informal ones, but still over fairly

long periods such as decades unless there are radical

changes in the environment within which the rules or

institutions apply.

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