ABSTRACT
The real world is an interdependent complex system. This is the major background of the current book, although we may not focus on discussion about the real world. Therefore, before going further, we will offer some essential elements of real-world economics. In the fi rst chapter, we propose that institutions are the equilibria of games and that they exist as rules of games. In this way, we combine the approaches of “institutions as equilibria” and “institutions as tools,” which is based on different theories of institutionalism. In order to have a clear picture of the different approaches to institutions, in this book we will discuss some of infl uential defi nitions and provide theoretical support for our defi nition.
