The author critiques new institutional economic theory’s reliance on neoclassical traditional and proposes that 1) the pursuit of economic goals is accompanied by that of noneconomics ones; 2) economic action is socially situated and cannot be explained by individual motive alone; 3) economic institutions are socially constructed. He proposes that economics arguments on how markets and incentives are structured as well as social structure must be taken into account to understand the current state.
