This module is an introduction to the study of (political) institutions. Whenever political actors interact, they do so within the context of certain rules (e.g., voting under a specific electoral system). These "rules of the game", as Douglass North has defined institutions, structure the incentives and behavior of individual political and economic actors. In this module, we will first learn about political and economic interactions in the absence of institutions, and then about how the addition of institutions changes political and economic outcomes. We will also explore the differential effect of various institutions on political and economic behaviour and ultimately policy outcomes. Finally, we will learn why different institutions emerge and what leads rules to change.