Mechanisms of Socio-Economic Activity Based on the Principles of Institutional Design: The Search for a General Model

Abstract

The article proposes a concept of a general model of mechanisms for joint socioeconomic activity based on the principles of institutional design developed within the Institutional Analysis and Development (IAD) framework. The initial thesis is the assumption of the existence of universal functions that implement the processes of coordination and governance/management in various types of mechanisms for regulating joint socio-economic activity. The set of the universal functions and the general structure of the abstract mechanism for joint activity are derived from the principles of institutional design of the IAD. The article considers a general approach to the embodiment of six universal functions in the form of a set of design elements used to create real mechanisms. The initial set of design elements is formed on the basis of the methods for implementing these functions within the three main modes of communication  direct, indirect, and rule-based  between participants in joint activity. The properties of the embodied mechanisms are considered, including the manifestation of these properties in real regulatory structures such as “network”, “hierarchy”, “market,” and “rules/ institutions”. The process of constructing embodied mechanisms for joint activity is interpreted as a task of choosing a combination of design elements that best suit the characteristics of a specific joint activity and environmental conditions. The principles of optimization of mechanisms for joint activity with heterogeneous operations are proposed, which leads to the possibility of hybridization of mechanisms. The main results of the study are presented in the form of a concept of a general model of joint activity mechanisms. The proposed approach can serve as a basis for the analysis of collective actions, research into the transformation of forms of social coordination and the potential impact of digital technologies, including AI, on the development of joint activity mechanisms. The model can be used in studies of cooperation, management of public resources, organizational design, and digitalization of socio-economic institutions.