Abstract State capacity is critical for development. Yet, the question of how states learn – that is, how they acquire and incorporate information to improve performance over time – has received little attention. In this paper, we draw from organizational theory and the political economy of knowledge and innovation to study the components of effective learning in states as organizations. We focus on three functionally simple, but well-documented early states in ancient Greece: Sparta, Athens, and Macedon. We argue that Macedon’s superior performance relied on a learning model capable of integrating both experiential and experimental knowledge within existing structures. By directing our attention away from the early modern period, where much work in economic history and historical political economy is concentrated, our account challenges the focus of the existing literature on processes of centralization. Instead, we highlight organizational factors that may promote capacity-enhancing learning even in the context of weak centralization.

Abstract The Iranian economy under the Islamic Republic of Iran has experienced 9 exchange rate shocks since the 1979 revolution. In particular, the shocks intensified with the sanctions on Iran in 2011. Many econometric tests have identified the effects of shocks, but the institutional sources of these shocks are underexplored. The contribution of this paper demonstrates that the Iranian macroeconomic dynamics are shaped by institutional factors. Anfal, the exclusive property of res nullius by the supreme jurisconsult, and the Shiite political capitalism deriving from it, foster parallel institutions, specifically parallel public treasuries, and speculative (hoarding) behaviour among agents, which in turn cause recurring exchange rate crises. Different economic policies of fundamentalists and reformists in the Islamic Republic of Iran are critically assessed, and the importance of constitutional elimination of the religious public finance (Anfal) and the creation of a unified secular public finance system is discussed.

Abstract Social scientists are paying attention to the role that knowledge plays in economic phenomena. This focus on knowledge has led to exploring two challenges: first, its governance to reap positive externalities and solve social dilemmas, and second, how we can craft institutions to match the intangible nature of ideas with adequate property rules. This article contributes by elaborating on the different knowledge property regimes and the elements contributing to their classification. This paper first taxonomises knowledge governance regimes based on Ostrom’s work on institutional analysis. Second, it examines why governance structures for managing knowledge production vary across industries, according to (1) the characteristics of knowledge, (2) the attributes of the organisations, and (3) the different rules-in-use to enforce property rights. This is the first study at the intersection of institutional analysis and political economy that highlights the knowledge features, incentive structures, and mechanisms undergirding knowledge governance in different property regimes.

Abstract This paper examines the concept of decentralised autonomous organisations (DAOs), blockchain-based entities intended to operate without central authority or management hierarchy, through the lens of organisational economics. It compares DAOs with conventional organisational forms and explores whether DAOs represent a novel organisational form. The paper investigates DAOs in the context of the electronic markets hypothesis and applies theories from Demsetz, Jensen and Meckling, and Williamson to understand their potential long-term viability. A key finding is that for DAOs to function as claimed, they must effectively suppress agency costs through smart contracts and internal contestable markets. The paper also highlights the challenges DAOs face in maintaining adaptive integrity and fostering cooperative adaptation. While DAOs show promise in reducing certain transaction and information costs, their long-term viability depends on overcoming significant governance and participation hurdles.

Abstract The emergence of large language models (LLMs) has made it increasingly difficult to protect and enforce intellectual property (IP) rights in a digital landscape where content can be easily accessed and utilized without clear authorization. First, we explain why LLMs make it uniquely difficult to protect and enforce IP, creating a ‘tragedy of the commons.’ Second, drawing on theories of polycentric governance, we argue that non-fungible tokens (NFTs) could be effective tools for addressing the complexities of digital IP rights. Third, we provide an illustrative case study that shows how NFTs can facilitate dispute resolution of IP on the blockchain.

Abstract Endogenous public health responses include the individual behaviours, community-based organizational responses, and informal rules that resolve economic problems during public health crises. We explore the relevance of endogenous responses in Orthodox Jewish communities during the COVID-19 pandemic. We analyse Orthodox newspapers in New York City and find that (a) rabbis advised their communities on how to stay healthy and observant to their religious beliefs; (b) rabbinical councils and advisory boards provided private, public health guidance; (c) private, Jewish ambulatory services provided religiously sensitive healthcare; (d) Orthodox Jewish schools privately provided public health services; and (e) community members altered religious rules, rituals, and traditions to mitigate the spread of the virus. While these responses did not occur seamlessly or without conflict, the Orthodox community worked diligently to provide public health services to remain healthy while also observing religious traditions. Our paper provides shows how communities develop endogenous public health responses during crises.

Abstract In the Hellenistic era, there was widespread convergence to the Attic standard and a similar narrowing of coin types in terms of aesthetics. The competition between issuers resulted in an equilibrium in which improvements to the consistency and quality of money were sought after. This institutional foundation resulted in the creation of an incentive structure that fortified adherence to international monetary standards and discouraged entropy due to debasement and the pursuit of short-sighted fiscal gains. This paper explores the role of reputational incentives faced by issuers when determining coinage standards and aesthetic types, as well as the benefits that the attainment of reputational value conferred to both the issuers and users of coinage. I argue that the economic openness and competitive nature of coin issuance in the period created a framework in which the imputation of fiduciary value to coinage stemmed from the generation of reputational quality.

Abstract This study examines the association between firm-level investments in automation technologies and employment outcomes, drawing on a panel dataset of approximately 10,450 Italian firms. We focus on the proliferation of non-standard labour contracts introduced by labour market reforms in the 2000s, which facilitated external labour flexibility. Our findings reveal a positive relationship between automation investments and the adoption of these flexible labour arrangements. Guided by a conceptual framework, we interpret this result as evidence of complementarity between automation technologies – viewed as flexible capital – and non-standard contractual arrangements – viewed as flexible labour. This complementarity is essential for enhancing operational flexibility, a critical driver of firm performance in competitive market environments. From a policy perspective, our analysis highlights the importance of measures that protect labour without undermining the efficiency gains enabled by automation.

Abstract In this paper, we build a theoretical framework to better understand the polycentric governance of global socio-ecological challenges through the lenses of meso-institutional analysis. Climate change, deforestation, pollinator decline, and loss of soil fertility are examples of complex socio-ecological challenges caused by anthropic pressures at a global scale. These challenges result in intractable social dilemmas and absent or weak macro-institutions, posing questions on how subsidiary mechanisms of coordination can be adopted in a polycentric governance approach. Building on the meso-institutional framework and socio-ecological systems framework, we investigate the emergence and establishment of multi-stakeholder partnerships (MSPs), where businesses, governments, and civil society organizations try to address global challenges. Recognizing meso-institutional functions in MSPs allowed us to expand our theorizing of the polycentric governance of global socio-ecological challenges, looking at nested, interrelated, and multi-layered relations between multiple actors and organizations.

Abstract This article seeks to answer the question of how interbranch organisations (IBOs) can facilitate coordination among agents involved in transactions within agri-food chains. An IBO is a complex entity that establishes relationships among agents operating at different stages of a supply chain. The empirical analysis focuses on the Italian tomato supply chain and adopts a Process-tracing approach. The study is grounded in meso-institutions theory and demonstrates how the meso-institutional nature of the analysed IBO helps explain its role in establishing coordination among agents by performing the functions outlined by the theory. The institutional outcome of this relationship is the adoption of a contractual system that facilitates coordination itself. The contractual system identified provides an example of the articulation between the meso-institutional and micro-institutional levels.