An Introduction to Institutional Inertia: Concepts, Types and Causes

The resistance of institutions to change (or institutional inertia), is one of the important issues in institutional economics. In this chapter, the concept of inertia, the types of inertia in human sciences, and the causes of institutional inertia have been explained. Also, types of inertia at the level of individuals, inertia at the level of social and political structures, and inertia at the level of knowledge development, concepts and ideas are explained. Due to the importance of institutional inertia and the fact that this type of inertia includes a large number of other types of inertia (such as organizational inertia, psychological inertia, and socio-political inertia), sixteen major and fundamental factors causing institutional inertia have also been introduced and explained. These factors are divided into four categories: economic, socio-political, historical, and psychological factors and are briefly explained. Another contribution of this chapter is providing evidence of the compatibility of institutional changes and institutional continuity.