Measuring Agreements

For North (1993), the private initiative would have to act freely in the market, with the society acting free and creative, what it does not mean the inexistence of rules, even so it demonstrates concern with the uncertainties proceeding from the social and economic environment of the agents. But so that this occurs it is necessary that the market is competitive and that the population possesss a good level of education to search these solutions creative. The uncertainties, according to author, make with that they increase the costs of the transactions, therefore the economic agents will not have security, or rules that assure to the end of the contract, that its product it will the same continue having value of market. It defends that behavior norms will have to be developed that will go to support and to legitimize the rules created for the public power and agent economic to prevent its instability. For it, the politics close and is directly related with the economic development that creates and makes to fulfill the property rights efficiently and the organizations are the main agents of a society.

Political Measuring and enforcing agreements in markets is to far lives difficult. To measure and to make to fulfill to agreements politicians in the markets are very difficult. What is being exchanged (between constituents and legislators in democracy) is promises will be votes. What he is being changed between the voters and the legislators in a democracy they are promises of votes. To voter has little stimulates you become informed because the likelihood that one' s votes matters is infinitesimal; to further the complexity of the issues produces genuine uncertainty. The voter has little incentive to become informed (&). Political Enforcement of agreements is beset by difficulties. Execution of agreements politicians if comes across with difficulties. Competition is to far less effective than in economic markets.

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