ABSTRACT
This chapter shows in what follows that the emergence of norms can be accounted for by two simple principles. The first of these concerns the conditions in which a demand for effective norms will arise; the second concerns the conditions under which the demand will be satisfied. Both sets of conditions may be described as social structural. The chapter uses the example of the common project to examine the structure of action when sanctions are incremental, carried out by all the actors in the collectivity other than the one being sanctioned. The structure of interests created by externalities in which norms have their genesis may be seen more systematically by use of simple situations the outcomes of which can be described by payoff matrices as used in theory of games. The chapter examines how a norm actually comes into being once a demand is created by externalities is altogether another matter.
