A research of institution design based on social choice

The regulation of human behavior by institutions can be deemed as a process of social choice, in which specific social choice rules attain the objective of institution design by governing human choices. This paper provides a new framework of institution design — institution design based on social choice, which avoids the “black box” dilemma in institution design. The paper discusses the key issues in the implementation of this new framework and proves its feasibility through a case study.