Institutional supply and effective institutional change

Based on introducing several essential concepts about institution and institution-change, this paper analyzes two models of the induced institutional change and the imposed institutional change. The institution-change is divided into the effective institutional change and the noneffective institution-change, the effective institutional change namely points to the process of transferring to the available institution in an effective way. The paper brings forward that the available institution is from the effective institution-supply and the institution-demand, that the "black box" studied by institution-change has abstracted the supply-drive and process. The available institution-supply comes from a strong ability of institution-supply which arises from the comparison of the new and the old institution and the information processing.