Collective Action In Institutional Economy

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Within the framework of the institutional economy, the problem of collective action was first and foremost studied by John Commons. Commons defined the institutions through collective action: the Institute is a collective action to control, liberate and expand individual action. Since economic benefits are limited, their acquisition is regulated by collective action. Collective action creates rights and obligations with respect to property and freedoms, without which anarchy would reign in society. The institutional economy gives collective action its own place in resolving conflicts and preserving order in a world of limited resources, private property and contradictions. The traditional theory of groups unequivocally asserts that private…show more content…
Adherents of this view are trying to explain today's association in groups and associations by the evolution of modern industrial society from the primitive preceding it. Initially, there were only small family or family groups that dominated primitive society. Due to the evolution in society, social differentiation occurs, new associations arise that take on the functions previously performed by family groups. According to the sociologist, Tolcott Parsons, "in an advanced society, a more important role is played not by related alliances, but by the state, the church, universities, corporations and professional associations." Within the framework of the formal version of the traditional theory of groups, there is no unequivocal answer to the question what is the fundamental source of the formation of small groups in a primitive society and large groups (voluntary associations in modern…show more content…
According to this approach, small groups prevailed in a primitive society, since they were most suited to fulfill the functions required by the people of this society. In modern society, on the contrary, large associations prevail, only they can perform certain necessary functions. Within the framework of traditional group theory, the fact that small and large groups differ in the level (scale) of functions performed, but not in nature (the degree of success in implementing these functions and the ability to attract new members) is recognized. Any group or organization, large or small, acts to obtain a collective good, which by its nature will be beneficial to all members of the group, this is the fundamental reason for the emergence of groups. Although it can be recognized that small groups in many cases more successfully provide collective

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