About the book: year / Institutions influence the type of economic system, the path along which the economy develops. Institutions, together with the technology used, determine transaction costs and production costs, thereby influencing the economic situation. Institutions are a set of formal rules, informal restrictions and mechanisms for their enforcement. The important thing is that formal rules can be changed by the state, but informal restrictions change very slowly. Both formal rules and informal restrictions are ultimately formed under the influence of people’s subjective worldview, which, in turn, determines the explicit choice of formal rules and the development of informal restrictions. Institutions are different from organizations. Institutions are the rules of the game, and organizations are groups of individuals who are connected by a common goal function. For example, economic organizations include firms, trade unions, cooperatives, political institutions and political parties, legislatures, and so on..