The ‘new institutional economics’ (NIE) can go a long way towards comprehending the emerging complexities of local government. As local bodies seek to forge collaborative partnerships with other organisations, they have to decide whether to solve horizontal co-ordination problems through market, hierarchy or network mechanisms. NIE can show that where other governance mechanisms are incomplete or subject to high transaction costs, trust and co-operation can informally develop through the process by which network interactions become embedded within each other. We show how this approach can be revised to take into account the expressive dimension of behaviour in hope-based networks whose members are bound together not so much by structures of resource dependence as by the hope and trust they place in the advancement of common goals.
AxelrodR. (1984). The evolution of co-operation. Basic Books.
2.
BaileyS. (1999). Local government economics: Principles and practice. MacMillan.
3.
BennisW., & NanusB. (1985). Leaders. Harper and Row.
4.
BorzelT. J. (1998). Organizing Babylon—On the different conceptions of policy networks. Public Administration, 76, 253–273.
5.
BouldingK. E. (1978). Ecodynamics. SAGE Publications.
6.
BradrachJ. L., & EcclesR. G. (1991). Price, authority and trust: From ideal types to plural forms. In ThompsonG., FrancesJ., LevacicR. & MitchellJ. (Eds.), Markets, hierarchies and networks: The co-ordination of social life (pp. 277–292). SAGE Publications.
7.
CoaseR. H. (1937, November). The nature of the firm. Economica, 4, 386–405.
8.
ColemanJ. (1990). Foundations of social theory. Harvard University Press.
9.
CollinsR. (1993). Emotional energy as the common denominator of rational social action. Rationality and Society, 5(2), 203–220.
10.
ElsterJ. (1998). Emotions and economic theory. Journal of Economic Literature, 36(1), 47–74.
11.
FestingerL. (1957). A theory of cognitive dissonance. Stanford University Press.
12.
FrijdaN. H. (1986). The emotions. Cambridge University Press.
13.
FrommE. (1968). The revolution of hope: Towards a humanized technology. Harper and Row.
14.
GambettaD. (1988). Trust: Making and breaking co-operative relations. Basil Blackwell.
15.
GoffmanE. (1959). The presentation of self in everyday life. Anchor Books.
16.
GranovetterM. (1985). Economic action and social action: The problem of embeddedness. American Journal of Sociology, 91, 481–510.
17.
HindmoorA. (1998). The importance of being trusted: Transaction costs and policy network theory. Public Administration, 76, 25–43.
18.
HirschmanA. O. (1985). Against parsimony. Economics and Philosophy, 1(1), 7–21.
19.
HoodC. (1991). A public administration for all seasons?Public Administration, 69(1), 3–19.
20.
JordanG. (1990). Sub-government, policy communities and networks: Refilling the old bottles. Journal of Theoretical Politics, 2(3), 319–338.
21.
JordanG., & RichardsonJ. (1979). Policy communities: The British and American style. Policy Studies Journal, 11, 603–615.
22.
KenisP., & SchneiderV. (1991). Policy networks and policy analysis: Scrutinizing a new analytical toolbox. In MarinB., & MayntzR. (Eds.), Policy network: Empirical evidence and theoretical considerations. Campus Verlag.
23.
KerrR. (1999). Toward more efficient and democratic local government. Hamilton, The Business Network.
24.
KingdonJ. W. (1984). Agendas, alternatives and public policies. Little Brown.
25.
KrepsD. (1990). Corporate culture and economic theory. In AltJ., & ShepsleK. (Eds.), Perspectives on positive political economy (pp. 90–143). Cambridge University Press.
26.
KuranT. (1990). Private and public preferences. Economics and Philosophy, 6(1), 1–26.
27.
LindblomC. (1959). The science of muddling through. Public Administration Review, 14, 79–88.
28.
LouryG. (1994). Self-censorship in political discourse. Rationality and Society, 6(4), 428–461.
29.
LowndesV., & SkelcherC. (1998). The dynamics of multi-organizational partnerships: An analysis of changing modes of governance. Public Administration, 76, 313–333.
30.
MackintoshM. (1992). Partnership: Issues of policy and negotiation. Local Economy, 7, 3.
31.
MarshD., & RhodesR. A. W. (1992). Policy networks in British governments. Oxford University Press.
32.
MayntzR. (1993). Modernization and the logic of interorganizational networks. In ChildJ., CrozierM., & MayntzR. (Eds.), Societal change between market and organization. Avebury.
33.
OuchiW. (1991). Markets, bureaucracies and clans. In ThompsonG., FrancesJ., LevacicR., & MitchellJ. (Eds.), Markets, hierarchies and networks: The co-ordination of social life (pp. 246–255). SAGE Publications.
34.
PowellW. (1991). Neither market nor hierarchy: Network forms of organization. In ThompsonG., FrancesJ., LevacicR., & MitchellJ. (Eds.), Markets, hierarchies and networks: The co-ordination of social life (pp. 265–276). SAGE Publications.
35.
RhodesR. A. W. (1988). Beyond Westminster and Whitehall. Unwin Hyman.
36.
RhodesR. A. W. (1997). Understanding governance. Open University.
37.
RhodesR. A. W., & MarshD. (1992). New directions in the study of policy networks. European Journal of Political Research, 21(3), 181–205.
38.
SabatierP. (1988). An advocacy coalition framework of policy change and the role of policy-oriented learning therein. Policy Sciences, 21(2), 129–168.
39.
ScharpfF. (1992). Political institutions, decision styles and policy choices. In CradaR., & Windhorff-HeritierA. (Eds.), Political choice, institutions, rules and the limits of rationality (pp. 53–86). Campus.
40.
SnyderC. R. (1994). The psychology of hope. The Free Press.
SutherlandS. (1989). ‘Hope’. In VeseyG. (Ed.). The philosophy in Christianity. Cambridge University Press.
43.
TaylorC. (1985). Philosophy and the human sciences. Cambridge University Press.
44.
ThompsonG., FrancesJ., LevacicR., & MitchellJ. (Eds.). (1991). Markets, hierarchies and networks: The co-ordination of social life. SAGE Publications.
45.
WallisJ. L. (1999). Local government reform in New Zealand. Paper presented at the International Symposium of the Korean Association of Public Administration on Asian Values and Government Reforms, Hoam Convention Centre, Seoul, pp. 359–394.
46.
WallisJ., & DolleryB. (1999). Market failure, government failure, leadership and public policy. Macmillan.
47.
WilliamsonO. E. (1985). The economic institutions of capitalism. Free Press.
