Conventions and norms in institutional design

pp. 95-112

in: David L. Weimer, Institutional design, Berlin, Springer, 1995

Abstract

A world without conventions and norms is almost unimaginable. We use conventions and norms to make countless predictions (generally confirmed) about the future behavior of others: our co-workers will appear at work each day, other drivers will remain on the right side of the road, the restaurant will accept payment in dollars, people giving us directions will do so honestly, long-term friends will help us with minor needs, and so on. Without this ability to predict the behavior of others, we would be unable to fulfill almost all of our plans: saving money for the future, making improvements to our homes, getting an education to qualify for a job, and so on.