Conduct, Rules and the Origins of Institutions

VERNON SMITH
JOURNAL OF INSTITUTIONAL ECONOMICS 11.3 (2015): 491-483

Abstract: This paper supports the effort by Hindriks and Guala (2014) to integrate the prevailing accounts of institutions. Vernon Smith illustrates with traffic narratives how we can think of their concept of rules-in-equilibrium as evolving from universal elementary forms. These conceptions resonate fully with Adam Smith (1759) who saw rule-following conduct as the basis of human sociality and action.