Institutions are themselves products of strategic interaction and thus cannot serve as exogenous stabilizers of the very behavior they presuppose—Douglass North's institutional economics shows rules emerge from and are sustained by ongoing bargaining.
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Formal or informal systems of rules and organizations (like governments, markets, or legal systems) that structure how people interact and make decisions.
Presuppose(what both foundationalisms supposedly do)
To assume or take for granted something as true in order to make an argument work, without proving it first.
Stabilizers(what institutions are being claimed NOT to be)
Forces or systems that keep things steady and prevent dramatic changes.
Strategic interaction(describing how institutions emerge)
Situations where people's choices depend on what they think others will do, like in negotiation or competition.