The New Institutional Economics

Although the organization of economics relations is of crucial importance, the traditional micro-economics is restricted to the theory of expenses on a single market, without transaction expenses. Throught the application of neo-classical instruments, new institutional economics extends the micro-economic field by putting the organization of economy into its congnitive object. In this article the authors present some important fields of the new institutional economics. From the point of view of institutional economics it is important that market economy does not operate only according to the principle that on one hand the state has set the legal regulations well, and that, on the other hand there are business operations between "impersonal" individuals. Personal contact and relational contracts between individuals play a very important role.It is true that markets - in one of their parts - really are organizations built up of individual economic subjects. We might say that the free market with a developed liberal competition is a highly developed organization of human cooperation, a system of individual co-operation, both in terms of the development of the rules of the game as well as in the terms of their keeping and successful implementation. Within the framework of institutional economics as a constituent part of microeconomics there is the intention to introduce premises close to reality which would analytically support the fields of organization, delegating, co-ordination, information, legal safeguarding. The new institutional economics includes, in particular, the analysis of property rights, economics of transaction expenses, and agency theory, which analyse institutions by means of the application of analytical instruments of neo-classical microeconomics.