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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]], who was 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 commons, such as fishery stocks, woodlands. Ostrom explored which institutional structures support arrangements that handle those resource stocks in a sustainable way, balancing individuals' use with the interest of a wider public. Under the rational choice models, the IAD was devised in an attempt to ''explain and predict'' outcomes by formally exploring and documenting the governance structures, the actors' positions, and the informal and formal rules devised for individuals to extract resources from the commons resource. Thus, the IAD is a [[Systematic sampling|systematic method]] to document 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.
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>
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