Institutional design for complex technological systems

Abstract

Complex technological systems like telecom, energy and transport infrastructures are subject to institutional (re)design. Institutions concern different levels of analysis like laws and regulations as well as contracts and organisations which regulate and coordinate the behaviour of actors in complex networks. In relation to technological and process design, we discuss how efficient and effective institutions can be designed according to structure behaviour in such a way that socially desired objectives are realised. After analysing the stabilising and instrumental role of institutions, we introduce a four-layer model, which offers the building blocks for identifying the steps to be considered in processes of institutional design. After having discussed the constraints in designing institutions, we present a generic model meant to be helpful in structuring the process of designing institutions in complex technological systems.