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Understanding Institutions proposes a new unified theory of social institutions that combines the best insights of philosophers and social scientists who have written on this topic. Francesco Guala presents a theory that combines the features of three influential views of institutions: as equilibria of strategic games, as regulative rules, and as constitutive rules. Guala explains key institutions like money, private property, and marriage, and develops a much-needed unification of equilibrium- and rules-based approaches. Although he uses game theory concepts, the theory is presented in a simple, clear style that is accessible to a wide audience of scholars working in different fields. Outlining and discussing various implications of the unified theory, Guala addresses venerable issues such as reflexivity, realism, Verstehen, and fallibilism in the social sciences. He also critically analyses the theory of "looping effects" and "interactive kinds" defended by Ian Hacking, and asks whether it is possible to draw a demarcation between social and natural science using the criteria of causal and ontological dependence.
Focusing on current debates about the definition of marriage, Guala shows how these abstract philosophical issues have important practical and political consequences. Moving beyond specific cases to general models and principles, Understanding Institutions offers new perspectives on what institutions are, how they work, and what they can do for us. "This is a lively work with many engaging arguments. . . . The book remains important and deserving of attention in the social ontology debates. While it is not written as a textbook, it would be very useful in the classroom. The lively prose is organized into compact chapters that close with recommended readings. Engaging this book with a group of graduate or advanced undergraduate students would be rewarding for all."---Mark Risjord, Notre Dame Philosophical Reviews "Guala's book is very clearly written and well-structured. Its accessible prose makes it ideal as an introductory text. By reviewing several complex problems and offering solutions it will help further constructive debate and theoretical development. . . . [Guala] consolidates an important argument and raises additional questions that help us to move further forward. This is a great book, which should be read by every social scientist who wants to understand institutions."---Geoffrey M. Hodgson, Journal of Economic Methodology "Winner of the 2018 Joseph B. Gittler Award, American Philosophical Association"

Understanding Institutions: The Science and Philosophy of Living Together

Preface vii Analytical Table of Contents xiii Introduction xvii PART I UNIFICATION 1 RULES 3 2 GAMES 20 3 MONEY 33 4 CORRELATION 44 5 CONSTITUTION 57 6 NORMATIVITY 70 INTERLUDE 7 MINDREADING 89 8 COLLECTIVITY 102 PART II APPLICATION 9 REFLEXIVITY 119 10 INTERACTION 132 11 DEPENDENCE 146 12 REALISM 163 13 MEANING 177 14 REFORM 194 Bibliography 207 Index 219