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The '''Institutional Analysis and Development framework''' ('''IAD''') is a theoretical framework for investigating how people ("actors") interact with [[Common-pool resource|common-pool resources]] (CPRs). CPRs are economic goods which are rivalrous (i.e. one person's use reduces the ability of others to use) and non-excludable (i.e. it's impractical to prevent people accessing it) - examples include forests as a source of timber, or fields as a source of pasture.
The '''Institutional Analysis and Development framework''' ('''IAD''') was developed by [[Elinor Ostrom]], an American [[political scientist]], also known as the first woman to receive the [[Nobel Memorial Prize in Economic Sciences]] in 2009.<ref>[[Elinor Ostrom|Ostrom, Elinor]]. (1990) ''Governing the Commons: The Evolution of Institutions for Collective Action''. New York: Cambridge University.</ref> The IAD relates a set of concepts to help in the analysis of collective action problems that involve social structures, positions, and rules. Under the rational choice models, the IAD was devised in an attempt to ''explain and predict'' outcomes by formalising the structures, positions, and rules involved in collective choice problems. Thus, it can be seen as a [[Systematic sampling|systematic method]] to collect policy analysis functions similar to [[analytical technique|analytic technique]] commonly used in [[Physical science|physical]] and [[social science]]s and understand how institutions operate and change over a period of time<ref name=indiana>{{cite web|author1=Michael D. McGinnis|title=An Introduction to IAD and the Language of the Ostrom Workshop: A Simple Guide to a Complex Framework for the Analysis of Institutions and Their Development|url=http://poseidon01.ssrn.com/delivery.php?ID=751119001100098006090092064001065006034048031046008017077070065006068117100125067022058117006035008099001118111016111092122095106078039042042125118092118002001030086033030046005106074116117000084089121084&EXT=pdf&TYPE=1|publisher=[[Indiana University]]|accessdate=2 February 2015}}</ref><ref name=mason>{{cite book|author1=Margaret M. Polski|author2=Elinor Ostrom|title=An Institutional Framework for Policy Analysis and Design|url=https://mason.gmu.edu/~mpolski/documents/PolskiOstromIAD.pdf|accessdate=1 February 2015}}</ref>. ▼
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=== Components of the framework ===▼
[[File:IAD framework diagram.png|thumb|400px|IAD framework diagram]]
Ostrom thought of the IAD as a "multi-level conceptual map" with which one could zoom in and out of particular hierarchical parts of the governance structures in a social system.
Ostrom thought of the IAD as a "multi-level conceptual map" with which one could zoom in and out of particular hierarchical parts of the regularised interactions in an established social system. The IAD framework helps to perceive complex collective action problems by dividing them into 'action arenas', that are smaller pieces of practically understandable function.<ref name="indiana" /> The analyst assumes that the structure of the action situation is fixed in the short-term. For an action situation to exist, there must be "actors in positions" (the number of possible roles that are available in this recurring interaction situation)<ref name="Understanding Institutional Diversity">{{cite book|url=http://press.princeton.edu/chapters/s8085.pdf|title=Understanding Institutional Diversity|author=Elinor Ostrom|date=2009|publisher=Princeton University Press|isbn=9781400831739|___location=Princeton|accessdate=30 January 2015}}</ref>. Actors have choices within the existing (rule) structure. In the study of outcomes from collective choice situations, actors are influenced by the institutional arrangements, the socio-economic conditions, and the physical environment<ref>{{cite journal|author1=Krister Andersson|title=Understanding decentralized forest governance: an application of the institutional analysis and development framework|url=http://sspp.proquest.com/archives/vol2iss1/0507-010.andersson.html|journal=Sustainability: Science, Practice, & Policy|accessdate=2 February 2015}}</ref>. The institutional arrangements can be studied by seven rule types (as per below).<ref name="Understanding Institutional Diversity" />▼
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