Question

to employees of the Federal Communications Commission (FCC), Douglass North tried to explain the importance of certain factors in determining how well the FCC would function (as a regulator) in both time t and time t+1. Describe the role he ascribed to the following three factors:
(a) Flexibility in formal rules;
(b) Effects of technological change;
(c) Informal rules (or social norms).

Answer 1

A) Flexibility in formal rules .on today's world flexible work arrangement are more in demand because of the following

1) it is cost effective .

2) lower operating costs.

3) less employee turnover.

4) greater hiring flexibility.

B) There are many positive impacts of technology changes ,as it

- increases the productivity

- improves the efficiency , performance.

-it helps to organize every task.

C) Informal rules makes environment intimate relationship with formal laws , policies and standards. It is that situation that makes relaxed and friendly rather than serious , official rules .