Institutions Constrain Feasible Choices
Institutions, by functioning as the 'rules of the game' in an economic interaction, directly shape the set of actions available to individuals. By defining what is permissible, they establish the feasible set of choices for each person involved in the interaction.
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Social Science
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CORE Econ
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Introduction to Microeconomics Course
The Economy 2.0 Microeconomics @ CORE Econ
Ch.5 The rules of the game: Who gets what and why - The Economy 2.0 Microeconomics @ CORE Econ
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Institutions Constrain Feasible Choices
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A software company previously allowed its developers to choose their own working hours as long as they completed their weekly tasks. The company then implements a new mandatory policy requiring all developers to be online and available between 9:00 AM and 5:00 PM local time. This new policy, acting as an institutional rule, narrows the developers' __________ of work schedules.
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