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Dear colleagues, there is New subject in economics called Institutional and Behavioural Economics that hitting the real world and business sector. This years Nobel Price Winners in economics are Elinor Ostrom and Williamson who happen to be the guardians to New Institutional Economics/ Institutional and Behavioural economics.

The basis is from the realization of the fact that the market system assumptions are most often not in operation in the real world and most business transactions are influenced by human behaviour. The subject is not deviation from real economics but supplement to Economic theory. It helps to fill in the gaps as it remains every actor about existence of information asymmetry, Moral hazard, Social relations, Economics Sociology that often lead to transaction cost in economics and role of collective action business. The origin of this subject is from coarse paper in 1937 the nature of the firm. In the paper he was justifying the role of a firm in reducing transaction of doing business. The recent financial crisis sent World Macro Economist in disarrays as they could not explain the source of Crisis but NIEs believe it from failure to manage transaction cost by lack of institutions to enforce and monitor contracts in business. Coarse for example says that economist by assuming perfect competition ignored the real cost of doing business (Transaction cost).

This school of Economics has Very good framework for research in the Business sector especially in unpacking the markets, production systems and all business related activities. It does not require a lot of mathematics but gives interesting results that are realistic. At times it may require some modelling. I thought as a business school We need to a ware and  in near future start teaching the post graduate class this subject as we strive to be the leaders in providing Business Eduction in East Africa. I will bring one Source for the school and for now i am sending Elinor OStrom hand book. The source Book will contain many research papers from renowned scholars and some colleagues may be interested in writing their thesis Using this frame work (IAD).

Kind Regards

John