The market for the "old" and the economicse "new" institutional

Vol. 38 No. 3 (2018)

Jul-Sep / 2018
Published February 26, 2020

How to Cite

Pereira, Adriano José, and Herton Castiglioni Lopes. 2018. “The Market for the "old" and the Economicse "new" Institutional”. Brazilian Journal of Political Economy 38 (3):450-68.

The market for the "old" and the economicse "new" institutional

Adriano José Pereira
Professor adjunto do Departamento de Economia e Relações Internacionais da Universidade Federal de Santa Maria (UFSM), RS - Brasil.
Herton Castiglioni Lopes
Professor adjunto da Universidade Federal da Fronteira Sul (UFFS), SC - Brasil.
Brazilian Journal of Political Economy, Vol. 38 No. 3 (2018), Jul-Sep / 2018, Pages 450-468


This paper conceives of the market as an institution, and contrasts two theoretical approaches: Institutionalism, with an evolutionary and analytical bias, whose theoretical basis comes from “Old/Original” Institutionalism, and New Institutional Economics, with an analytical, contractual approach, linked to mainstream economics. Both approaches have given relevant contributions, as they consider the importance of institutions for economic performance. The limits of New Institutional Economics are particularly relevant, whose analysis of the operation of markets is centered on the logic of transaction cost economics as a determinant of economic performance. Evolutionary Institutionalism, in turn, sees the market within a broader scope, in which cost economies only partially explains economic performance, but it is not necessarily seen as a determining factor.

JEL Classification: B15; D23.

Keywords: Institutional economics market transaction costs evolutionary institutionalism