The role of institutions in human geography: a perspective from the new institutional economics

In this paper we propose a regional version of the Coase Theorem in which the importance of institutions is emphasised. The institutional diversity in time and space implies the non-validity of the universal conclusions drawn from neoclassic pre-Coasian economics and marks the relevance of the theoretical principles of a new institutionalism for human geography and regional studies. Thinking about institutions as the game rules of a society imply a theoretical approximation to human behaviour which includes the role of mental subjective models and belief systems of individuals.