Economic behavior is influenced by social institutions from "summary" of The Making of Economic Society by Robert L. Heilbroner,William Milberg
The behavior of individuals in an economy is not solely determined by their individual desires or preferences. Rather, it is greatly influenced by the social institutions that shape and govern their interactions. These institutions, such as laws, customs, and norms, play a crucial role in shaping the economic behavior of individuals within a society. For example, consider the institution of property rights. These rights define who has the right to use, control, and transfer resources within a society. The existence of strong property rights encourages individuals to invest in and develop resources, as they are assured that they will be able to reap the benefits of their efforts. On the other hand, weak or insecure property rights may discourage individuals from investing, leading to underdevelopment and inefficiency. Similarly, social institutions such as...
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