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TheSverigesRiksbankPrizeinEconomicSciencesinMemoryofAlfredNobel2009"forheranalysisofeconomicgovernance,especiallythecommons""ElinorOstrom1/2USAIndianaUniversityBloomington,IN,USAb.19331TheSverigesRiksbankPrizeinEconomicSciencesinMemoryofAlfredNobel2009"forhisanalysisofeconomicgovernance,especiallytheboundariesofthefirm"OliverE.Williamson1/2USAUniversityofCaliforniaBerkeley,CA,USAb.193223PressRelease12October2009Economicgovernance:theorganizationofcooperationElinorOstromhasdemonstratedhowcommonpropertycanbesuccessfullymanagedbyuserassociations.4OliverWilliamsonhasdevelopedatheorywherebusinessfirmsserveasstructuresforconflictresolution.5Overthelastthreedecadestheseseminalcontributionshaveadvancedeconomicgovernanceresearchfromthefringetotheforefrontofscientificattention.6Economictransactionstakeplacenotonlyinmarkets,butalsowithinfirms,associations,households,andagencies.Whereaseconomictheoryhascomprehensivelyilluminatedthevirtuesandlimitationsofmarkets,ithastraditionallypaidlessattentiontootherinstitutionalarrangements.7TheresearchofElinorOstromandOliverWilliamsondemonstratesthateconomicanalysiscanshedlightonmostformsofsocialorganization.8ElinorOstromhaschallengedtheconventionalwisdomthatcommonpropertyispoorlymanagedandshouldbeeitherregulatedbycentralauthoritiesorprivatized.Basedonnumerousstudiesofuser-managedfishstocks,pastures,woods,lakes,andgroundwaterbasins,Ostromconcludesthattheoutcomesare,moreoftenthannot,betterthanpredictedbystandardtheories.9Sheobservesthatresourceusersfrequentlydevelopsophisticatedmechanismsfordecision-makingandruleenforcementtohandleconflictsofinterest,andshecharacterizestherulesthatpromotesuccessfuloutcomes.10OliverWilliamsonhasarguedthatmarketsandhierarchicalorganizations,suchasfirms,representalternativegovernancestructureswhichdifferintheirapproachestoresolvingconflictsofinterest.11Thedrawbackofmarketsisthattheyoftenentailhagglinganddisagreement.Thedrawbackoffi
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