Framework for analysis of linkage between choice coordinating institutions and performance of the economy. Market with alternative property and conduct rules to Government enterprises and commands, Role of formal and informal institutions. Institutional theory: Economics beyond the market, Understanding the anatomy of market imperfections, rent seeking and market behaviour. Property as power and as economizing: Institutions as constraints and as enabling, Power, Cost and political economy: Cost as a function of institutions. Demand as a function of income distribution. Overcoming market failure: The Coasian Paradigm. Domain of institutional analysis: Open systems and the interdependence of the individual and society. Non-market institutions, The costs of centralization, Assessing democracy, Political institutions, Constitutional economics. The theory of decentralization. The political economy of decentralization, Corruption and decentralization, Behavioural economics, Rationality of self and others in an economic system. Rational choice, Rational fools, Incompatible use and exclusion cost, the logic of collative action. Behaviour that depends on behaviour of others, Prisoners’ dilemma. Human choice under alternative rules, the evolution of cooperation and outcomes. Uncertainty and information processing cost. Institutional change. An evolutionary approach to law and economics, Institutional change and economic performance. What is the best institution? Exit, Voice and Loyalty. Performance of alternative institutions i.e. Technology institutions, political and economic institutions and their role.