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Institutional design refers to the process of creating and organizing the rules, structures, and norms that govern the behavior of individuals and groups within an organization or society. It involves determining how institutions function, how power is distributed, and how decision-making processes are structured. Effective institutional design aims to enhance efficiency, accountability, and responsiveness, ensuring that institutions serve their intended purposes and meet the needs of their stakeholders. This concept is often applied in political science, economics, and organizational theory.

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