Indonesian Market Economics Is Reviewed of the Constellation of Law
Economic activity is strongly influenced by the layout of economic actors (political economy theory), the design of the rules of the game (the economic theory of transaction costs), the norms and beliefs of an individual / community (terori of social capital), incentives for collaboration (collective action theory)Arranged agreement (contract theory), choice of ownership of physical and non physical assets (theory of property rights), and others. In essence, there is always an incentive for individuals to behave so that the economic system can not only be guided by the market. In this case, non-market institutions are needed to protect the market from being trapped in endless failures by designing the rules of the game.At the macro level, the institute contains a set of political, social and legal rules that establish production, exchange and distribution activities. And at the micro level, institutions contain governance issues in order to exchange between economic units can take place both through cooperation and competition.