Old Institutional Economics

Old Institutional Economics (OIE) is a school of thought within institutional economics that emphasizes the role of social institutions—like laws, norms, and traditions—in shaping economic behavior and outcomes. Unlike traditional economic theories that focus mainly on markets and individual choices, OIE examines how institutions influence people's decisions and the overall economy. It highlights the importance of history, culture, and power dynamics, arguing that economic activity cannot be fully understood without considering these broader social contexts. Essentially, OIE explores how the rules of the game impact economic performance and societal well-being.