The new institutional economics and the theory of behaviour under uncertainty

The new institutional economics (NIE) is diverse in terms of the theory of behaviour under uncertainty. Some views are close to neoclassical economics, but others are similar to those held by heterodox economists. Distinctions between procedural and substantive uncertainty, weak and strong uncertainty and ambiguity and fundamental uncertainty help to identify different approaches to uncertainty in NIE. Regarding the influence of institutions on economics behaviour, not all NIE focuses on institutions as constraints and takes individuals as given. The dominant views of rationality in NIE are standard neoclassical maximization and bounded rationality, but alternative notions have also been defended.