Chapter 14 - The Size Dimension of Complex Economies—Towards a Meso-Economics: The Size of Interaction Arenas and the Emergence of Meso-Platforms of Institutional Coordination

Abstract

This chapter introduces the size dimension of economic interaction systems as a critical factor of solving complex economic problems through institutionalization. The chapter provides comprehensive literature reviews on the size dimension as used in economics so far and on the use and applications of “meso” and “meso-economics” in earlier economic literature. In an evolution-of-cooperation framework and a population perspective, the sizes of both the relevant population (arena) and the emerging carrier group (platform) matter for the possible outcomes. Agency mechanisms that can lead to preferential matching (partner selection) may permit institutional emergence at lower critical minimum masses. In some constellations, a maximum critical mass below the size of the whole population will turn out to carry the institution. We argue that a transfer of behavior, which has become habituated in some platforms, to other arenas provides the foundation for contextual trust to lead to general trust and thus to a culture of cooperation even among strangers and in one-shot interactions.