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American Economic Review 100 (June 2010): 641â672 http://www.aeaweb.org/articles.php?doi=10.1257/aer.100.3.641 By Elinor Ostrom* Contemporary research on the outcomes of diverse institutional arrangements for governing common-pool resources (CPRs) and public goods at multiple scales builds on classical economic theory while developing new theory to explain phenomena that do not fit in a dichotomous world of âthe marketâ and âthe state.â Scholars are slowly shifting from positing simple systems to using more complex frameworks, theories, and models to understand the diversity of puzzles and problems facing humans interacting in contemporary societies. The humans we study have complex motivational structures and establish diverse private-for-profit, governmental, and community institutional arrangements that operate at multiple scales to generate productive and innovative as well as destructive and perverse outcomes (Douglass C. North 1990, 2005). In this article, I will describe the intellectual journey that I have taken the last half century from when I began graduate studies in the late 1950s. The early efforts to understand the polycentric water industry in California were formative for me. In addition to working with Vincent Ostrom and Charles M. Tiebout as they formulated the concept of polycentric systems for governing metropolitan areas, I studied the efforts of a large
American Economic Review – American Economic Association
Published: Jun 1, 2010
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