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ostrom-lecture-slides - Beyond Markets and States:...

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Beyond Markets and States: Polycentric Governance of Complex Economic Systems Elinor Ostrom Prize Lecture, December 8, 2009
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Brief Overview of the Journey The Earlier World View of Simple Systems Efforts to Understand Complex Systems Studies of Polycentric Water and Police Industries Doubling the Types of Goods Developing the Institutional Analysis & Development (IAD) Framework
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Are Rational Individuals Helplessly Trapped in Dilemmas? Earlier studies recorded settings where humans self-organized to cope with common-pool dilemmas Little knowledge accumulation until a US National Resource (NRC) Committee studied common-pool resources across disciplines, sectors and countries Meta-analysis discovered diversity of locally known property rights to control resource use Empirical Studies of Common-Pool Resource Dilemmas In the experimental laboratory Irrigation systems in Nepal Forests around the world
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Current Theoretical Developments Many scholars now developing behavioral theories of individual choice Central role of trust in coping with dilemmas now seen for its importance Lessons from Studying Complex Systems Rules need to fit social-ecological context Polycentric systems may enable a fit between human action situations and nested ecological systems Panaceas are potentially dysfunctional Now, lets review the journey – back to the 1960’s
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Complex Human Systems Were Considered Chaotic in 1960s Scholars criticized the number of government agencies rather than trying to understand why created and how they performed. Maps showing many governments in a metropolitan area were used as evidence for the need to consolidate. V. Ostrom, Tiebout & Warren developed concept of polycentric systems to analyze performance rather than criticize messy maps
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Mechanisms Found to Improve Output in Polycentric Systems Small to medium-sized cities are more effective monitors of performance & costs. Citizens who are dissatisfied with service provision can “vote with their feet” and move to jurisdictions that come closer to their preferred mix and costs of public services. Local incorporated communities can contract with larger producers and change contracts if not satisfied with the services provided while urban districts inside a large city have no voice.
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Police Industry Studies In-depth studies of police served by multiple sized departments in six metropolitan areas Not a single instance was found where a large centralized police department outperformed smaller departments serving similar neighborhoods in regard to multiple indicators.
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80 Metropolitan Area Study Large number of direct service (e.g. patrol) producers found to be more efficient.
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ostrom-lecture-slides - Beyond Markets and States:...

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