Table 1. Typology of possible explanations for institutional change Utilitarian explanation Functional explanation Power explanation Legitimation explanation Mechanism of genesis Institution is established to minimize transaction costs Institution is crafted in order to overcome collective action problems Institution is established out of political conflict and strategic bargaining Institution is constructed based on a social definition of reality Mechanism of reproduction Institution is reproduced through the rational cost–benefit assessments of actors Institution is reproduced because it serves a function for an overall system Institution is reproduced because it is supported by an elite group of actors Institution is reproduced because actors believe it is morally just or appropriate Mechanism of transformation Increased competitive pressures; learning processes Exogenous shock that transforms system needs Weakening of elites and strengthening of subordinate groups Changes in the values or subjective beliefs of actors Adapted from Mahoney (2000).