The development of institutional theory has been contributed by several Nobel laureates with theories known as theory of agency, the theory of games, theory of transaction costs, public choice theory and other important theories. Among them these Nobel laureates who contributed to the development of institutional theory are Coase and North, Fogel, Myrdal, Hayek, Simon, Buchanan, Stiglitz and Arrow. In this paper will be presented some of their views on the development of institutional theory and their influence in this direction. Since Coase and North considered the Chairperson of new institutional economics, their thoughts will be explored in more details.
All these thinkers have contributed by explaining various issues according to the role, importance, dynamics and the emphasizing institutions.
Since the institutions and their evolution are the main source of political and economic changes need understanding and recognition of the achievements so far in institutional theory.