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What%20Institutions%20do - what and when Knowing one’s...

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Well-established, fully-functioning Institutions accomplish 3 things: 1. They channel information about market conditions, goods and participants. Information about businesses helps government regulate effectively Institutions can affect the production, collection, analysis, verification and dissemination of information and knowledge. For example: Accounting firms and credit registries facilitate information processing. Government regulations on the media – which restrict dissemination of information 2. They define and enforce property rights and contracts, determining who gets
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Unformatted text preview: what and when. Knowing one’s rights to assets and income and being able to protect those rights are critical for market development. 3. They increase competition in markets – or decrease it. Competition gives people incentives to do better and promotes equal opportunity. In competitive markets, resources are more likely to follow the merits of a project than the social or political connections of an entrepreneur. The degree of competition also affects innovation and economic growth....
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