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The IAD framework helps to perceive complex social phenomenon by dividing them into smaller pieces of practically understandable function.<ref name=indiana/> The important aspect of IAD framework is that outcome is influenced by the institutional arrangements created by local actors in a given context.<ref>{{cite journal|author1=Krister Andersson|title=Understanding decentralized forest governance: an application of the institutional analysis and development framework|journal=Sustainability: Science, Practice, & Policy|url=http://sspp.proquest.com/archives/vol2iss1/0507-010.andersson.html|accessdate=2 February 2015}}</ref>
Charlotte Hess, noted researcher on [[
Before Ostrom died in 2010, she further elaborated the possible rules to analyze a particular action situation.<ref name="Understanding Institutional Diversity"/>
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