-Institutions: rules of society or humanly devised constraints that shape human interaction; provide incentives for behaving, incentives for human exchange, whether political, social or econ
-Organizations: act/enforce rules; can have rules that govern their internal working and external relations; these rules are institutions, not organizations
Ex. domestic institutions: electoral rule, legislative rule, federalism, constitutions, etc.
-Congress is an organization, but the rules governing when a debate on a bill can close, etc. are institutions
-Intl institutions can be sovereignty as legal recognitions by other states (possissing legal rights to set laws), trade liberalization (reducing tariffs))