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Liburkina L. M.

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Methodology of Institutional Analysis Today: Elinor Ostrom’s IAD Framework
Lytvynenko N. I.

Lytvynenko, Nataliia I. (2026) “Methodology of Institutional Analysis Today: Elinor Ostrom’s IAD Framework.” Business Inform 6:32–40.
https://doi.org/10.32983/2222-4459-2026-6-32-40

Section: Economic Theory

Article is written in Ukrainian
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UDC 330.837:001.8

Abstract:
E. Ostrom proposed a new methodology of institutional analysis – Institutional Analysis and Development (IAD) – to study and solve complex social dilemmas. The aim of the article is to study the theoretical and practical aspects of applying the IAD conception. The article presents an interpretation of the IAD conception while preserving the main characteristics of the components and the sequence of analysis proposed by E. Ostrom. The graphical interpretation of the IAD framework presented here identifies four universal analytical blocks: the first block – exogenous factors; the second block – the action situation; the third block – interaction models and results; the fourth block – evaluation criteria. The identified blocks allow one to construct systems with configurations of different complexity and to study both the static and dynamic states of the system. To study the influence of exogenous factors on the structure of the action situation, we developed a table that illustrates the mechanism through which rules interact with the components of the action situation and the consequences of these interactions. It is noted that changes in the influence of one rule on participants’ behavior can completely alter the effect of other rules simultaneously operating in the system. Three levels of rules forming a hierarchical structure are described: operational, collective choice, and constitutional choice. At the operational level, social practices (traditions, norms, and rules emerge) are transformed into physical actions and outcomes. At the second level, political and economic decisions are made, defining the framework for daily activity and ensuring the adaptability and sustainability of the institutional system. At the level of constitutional choice rules, who has the right to participate in the process of collective choice is determined, and the rules used to develop collective choice rules are established. Recognition of the hierarchical structure of rules is one of the main methodological foundations of the IAD conception. A review of the scientific literature indicates that E. Ostrom’s institutional analysis methodology continues to develop actively and serves as a practical tool for collaborative work among experts from different fields in the study of complex problems.

Keywords: E. Ostrom; IAD framework; institutional analysis; action situation.

Fig.: 1. Tabl.: 1. Bibl.: 17.

Lytvynenko Nataliia I. – Doctor of Sciences (Economics), Professor, Professor, Department of Economic Theory and International Economic Relations, National Technical University «Dnipro Polytechnic» (19 D. Yavornytskyi Ave., Dnіpro, 49005, Ukraine)
Email: [email protected]

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