ABSTRACT

The issues of the emergence of institutions are the starting points of institutional investigations, and the approaches taken in these problems may determine the framework of institutionalism. Emergence is one of the most signifi cant notions in complexity theory and a crucial procedure or phenomenon in the real world. This study suggests the emergence of institutions is an evolutionary, stochastic, and (social) structural dependence process of interactions among agents. A typical way to explore social interactions is by using the game theory approach. However, classical game theory has many limits on outcome prediction due to its assumptions regarding the rational behavior of agents and informational structure. Also, it cannot capture the infl uences of social structures among agents. Hence, we apply the network game approach to model the impacts of such real factors.