1.
From informal tribal affairs to formal
democratic institutions
Vlad Tarko
Center for Institutional Analysis and Development,
Eleutheria Foundation, Bucharest

2.
Exchanges
Two people: A and B
Two products or services: x and y
A[x] B[y]  A[y] B[x]

3.
Exchanges
Two people: A and B
Two products or services: x and y
A[x(t1)] B[y(t1)]  A[y(t2)] B[x(t2)]

4.
Exchanges
Two people: A and B
Two products or services: x and y
A[x(t1)] B[y(t1)]  A[y(t2)] B[x(t2)]
Why does the exchange happen?
A[y(t1)] > A[x(t1)]
B[x(t1)] > B[y(t1)]