This volume presents historical, contemporary, and theoretical perspectives on the role of local communities and social norms in the economic development process. Using historical evidence combined with recent developments in institutional economics involving game theory and contracts, it establishes that communities can enhance the development of a market economy under certain circumstances -- and sheds light on what those circumstances are.

About the Author

Masahiko Aoki is Henri and Tomoye Takahashi Professor of Japanese Studies and Professor of Economics at Stanford University and Director-General of the Research Institute of Japan's Ministry of International Trade and Industry. His work on the theory of the firm, the Japanese economy, and comparative economic institutions has given rise to many widely read publications, including The Japanese Main Bank System (co-edited with Hugh Patrick) and The Co-operative Game Theory of the Firm.

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