Breaking the Path of Institutional Development: Alternatives to the New Determinism in Political Economy

The concept of path dependence is being used in highly deterministic ways in neo-institutionalist analysis, so that studies using this framework have dif.culty in accounting for, or predicting, change. However, the original Polya urn model from which pathdependence theory draws predicts that alternative paths will be possible. It can then be argued that actors will be able to use these when they perceive a need to change. This article seeks to capture this possibility through accommodating a Bayesian parametric decision-maker interacting with an environment. This makes it possible to examine how change may involve such processes as: the use of past or redundant institutional repertoires; transfer of experience across action spaces; or from other agents, through networks of structured relationships; the emergence of perceived ‘one best’ solutions. This approach points to the need to change how typologies are used in neo-institutionalist research, so that those features of cases that do not .t the pre-conceived framework of a type are not disregarded as ‘noise’, but properly evaluated as potential resources for change.

Colin Crouch and Henry Farrell (2004), “Breaking the Path of Institutional Development: Alternatives to the New Determinism in Political Economy,” Rationality and Society, 16, 1:5-43 (2004). Earlier version available as a Max-Planck Discussion Paper, Max-Planck Institute for the Study of Society, Cologne, Germany.

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Other Writing:

Chapter in an Edited Volume

“Great Britain: Falling Through the Holes in the Network Concept,” in Local Production Systems in Europe: Rise or Demise? – with Colin Crouch – ed. Colin Crouch et al.

British economic development has long exhibited strong regional patterns and contrasts. The UK shares with France a characteristic not possessed by Germany or Italy: the contemporary weakness of its major regional centres, so that the capital cities (London and Paris) and the regions surrounding them (the so-called Home Counties in south-east England and the Ile ...
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Academic Article

Analytical Democracy: A Microfoundational Approach – with Hugo Mercier and Melissa Schwartzberg

Henry Farrell, Hugo Mercier and Melissa Schwartzberg (2023), “Analytical Democracy: A Microfoundational Approach,” American Political Science Review. 117,2:767-772. A prominent and publicly influential literature challenges the quality of democratic decision making, drawing on political science findings with specific claims about the ubiquity of cognitive bias to lament citizens’ incompetence. A competing literature in democratic theory ...
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