that provide scripts for political processes. These institutional arrangements and
the patterns and regularities they produce are the subject of the present chapter.
This chapter is loosely organized into several themes. TheWrst deals with
deWning the terrain, in particular reviewing the several theoretical ways in which
institutions are interpreted by rational choice theorists. The second theme surveys
the progress we have made in understanding what I call structured and unstruc-
tured institutions. The third theme looks brieXy at the limitations of rational
choice institutionalism, and at the ways in which some of the bright lines that
formerly distinguished this Xavor of institutionalism from the many others
(see Hall and Taylor 1996 ) are becoming less discernible. 1
1 Interpretations of Institutions
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Within the rational choice tradition there are two now-standard ways to think
about institutions. 2 TheWrst takes institutions asexogenous constraints,orasan
exogenously given game form. The economic historian Douglass North, for
example, thinks of them as ‘‘the rules of the game in a society or, more formal-
ly,... the humanly devised constraints that shape human interaction’’ (North
1990 , 3 ). An institution is a script that names theactors, their respectivebehavioral
repertoires(orstrategies), thesequencein which the actors choose from them,
theinformationthey possess when they make their selections, and theoutcome
resulting from the combination of actor choices. Once we add actorevaluationsof
outcomes to this mix—actorpreferences—we transform the game form into a
game.
1 Rational choice institutionalism is a large topic and not one easily summarized in a brief essay. So
the interested reader should avail him- or herself of other surveys that complement the present one.
Weingast 1996 , 2002 and Shepsle 2006 cover some of the recent political science literature. Accessible
textbooks on rational choice political analysis include Hinich and Munger 1997 , Laver 1997 , and Shepsle
and Boncheck 1997. A comprehensive review of the public choice literature in economics and political
science is found in Mueller 2003. Systematic coverage of the work of political economics in a
comparative framework is presented in Persson and Tabellini 2000. An intelligent methodological
perspective is oVered in Diermeier and Krehbiel 2003. AndWnally, the gold standard for positive
political theory is the two-volume treatise by Austen-Smith and Banks 1999 , 2005.
2 An early formulation of institutions as exogenous constraints is found in Shepsle 1979 , and
elaborated further in North 1990. A critique of this formulation is found in Riker 1980. Schotter 1981
and Calvert 1995 develop the endogenous interpretation of institutions. Distinctions between exogen-
ous and endogenous institutions is presented in Shepsle 1986 , 2006. Weingast 2002 organizes his
outstanding review of rational choice institutionalism around this distinction as well. For alternative
frameworks, an excellent source is Crawford and Ostrom 1995 and Ostrom 2005.
24 kenneth a. shepsle