An Analysis On Institutional Evolution Based On Entrepreneurial Action

The institutional evolution is an important field in institutional economics research.New and old institutional economics,theory of institutional behavior and social institution school had all put forward its own viewpoint.But with the limitation of methodology,these theories are lack of analyzing the stage of institutional evolution completely.And since being lack of micro behavior basis,the institutional evolution cannot be analyzed deeply and systematically.With the Austrain school methodology and new research method of complex adaptive system,This dissertation will discuss the institutional evolution based on entrepreneurial action and build an Multi-Agent Based(MAB) institutional evolution model.Then the coevolutionary relationship between entrepreneurial action and institution is verified by the computerized simulation.The analyze process is as follow.Firstly,after review of existing institution evolution theory, this dissertation constructs the theory and analysis framework for institutional evolution based on entrepreneurial action.The author holds that the trajectory of the institution which evolves spontaneously could trace back to the action of entrepreneur who is subjective and alert. Secondly,the process of entrepreneurial action from opportunity discovery,judgement to innovation of the capital plan is analyzed.And the meaning and characteristic of capital,capital plan,capital structure and its evolution are discussed.Thirdly,after research of the character of complexity and self-organized of institutional evolution,the strong and weak ties of social network help the coevolutionary relationship between entrepreneurial action and institution.And the positive and negative feedback coordination mechanism of institutional evolution includes two aspects:institutional following action and institutional innovation action,which leads the institutional evolution process undergoing five stages:embryonic,developing,saturation, differentiation and recession stage.Lastly,for further study of institutional evolution process,the model is constructed based on Multi-Agent and the coevolutionary relationship between entrepreneurial action and institution and the important role of social network are verified by the computerized simulation.