ABSTRACT
Rational choice institutional models are an important new paradigm for studying institutions and institutional change in the EU. We can trace the beginnings of the institutional approach in both political science and economics to a set of institution-free theorems. In political science these go back to Arrow’s General Possibility Theorem (Arrow 1951a, 1963), in economics to the fundamental theorems of welfare economics (Arrow 1951b) and also Coase’s (1937, 1960) work.
