Institutions and Costs

This article discusses the role of institutions and costs in economic development.

It argues that institutions can lag behind environmental, technological, and social changes, and that vested interests may prevent institutional change.

The article provides examples of how this has played out in the communication and health care industries.

For more information, please see the following questions and answers:

• What is the role of institutions in economic development?
• How can vested interests prevent institutional change?
• What are some examples of how institutions have lagged behind environmental, technological, and social changes?

Thank you for reading!