Building Resilient Mechanisms for Joint Socio-Economic Activities: Insights from Institutional Design Principles

Parinov, Sergey (2025): Building Resilient Mechanisms for Joint Socio-Economic Activities: Insights from Institutional Design Principles.

Abstract

This paper explores the application of the "Institutional Analysis and Development" (IAD) framework, pioneered by Elinor Ostrom, to develop an abstract model for mechanisms facilitating joint socio-economic activities. By generalizing IAD's principles of institutional design, the study describes the structure and key functions of an abstract mechanism for joint activity and identifies a set of building blocks enabling the creation of real-world mechanisms such as networks, hierarchies, markets, and institutions. These mechanisms are analyzed through the lens of communication modes—direct, indirect, and absent—highlighting their role in coordination and governance. The research conceptualizes mechanism design as an optimization task. The construction of joint activity mechanisms is viewed as a task of selecting the optimal combination of building blocks to suit the specific characteristics of the joint activity and its surrounding environment. The prospects for developing a formal model of joint activity mechanisms are also discussed. The study introduces the notion of a "metamechanism" to guide the evolution and hybridization of the traditional mechanisms. This approach enhances understanding of how diverse mechanisms emerge and adapt to socio-economic complexities, providing a theoretical basis for improving collective action systems. The findings have broad implications for the study of governance, organizational design, and the management of commons.

• Item Type: MPRA Paper
• Language: English
• Keywords: principles of institutional design, joint activity, abstract mechanism, network, hierarchy, market, institution
• Subjects: B - History of Economic Thought, Methodology, and Heterodox Approaches > B4 - Economic Methodology > B41 - Economic Methodology; D - Microeconomics > D0 - General > D02 - Institutions: Design, Formation, Operations, and Impact; D - Microeconomics > D7 - Analysis of Collective Decision-Making; D - Microeconomics > D8 - Information, Knowledge, and Uncertainty > D82 - Asymmetric and Private Information ; Mechanism Design; D - Microeconomics > D8 - Information, Knowledge, and Uncertainty > D83 - Search ; Learning ; Information and Knowledge ; Communication ; Belief ; Unawareness

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