Scarcity, Institutions and Economic Behavior
No matter how affluent or poor we are as individuals or as a nation, scarcity is always present; that is, what we want exceeds what is available. Nature can be blamed for this state of affairs because it has given us fewer resources than we believe we must have. And other people can be considered culprits because they compete with us for scarce goods. Thus, we all live in a world of scarcity. To get a little bit more of something, a little bit of something else has to be given up.
KeywordsInstitutional Arrangement Business Firm Contractual Agreement Exogenous Change Unlimited Liability
Unable to display preview. Download preview PDF.
- Demsetz, H. “Toward a Theory of Property Rights,” American Economic Journal, 57, 1967.Google Scholar
- North, D. “Institutions, Economic Growth and Freedom,” in Freedom. Democracy and Economic Welfare (M. Walker, ed.), Vancouver: The Fraser Institute, 1988.Google Scholar
- S. Pejovich, “Toward an Economic Theory of the Creation and Specification of Property Rights,” Review of Social Economy, 30, 1972.Google Scholar