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Release Date 27.02.2026

 ECONOMIC THEORY

 

 

 

Kapultsevich Ilya

graduate student

Lomonosov Moscow State University (Moscow), This email address is being protected from spambots. You need JavaScript enabled to view it.

 

TRANSFORMATION AS AN OBJECT OF INSTITUTIONAL DESIGN: THEORETICAL FOUNDATIONS AND EMPIRICAL POSSIBILITIES OF C-NUDGE MODELING

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This article examines the role of culture in economic development from the perspective of institutional economics, which defines culture as a set of values and behavioral attitudes, with any member of society acting as a guarantor. Including culture as an informal institution allows for its organic inclusion as a component of institutional reforms, where informal rules are subject to change. Analyzing the latest theoretical and empirical work in this area, the authors operationalize cultural transformation as an independent tool for institutional design. Two main directions of cultural reforms are described: reducing transaction costs, improving coordination, and increasing the effectiveness of formal rules. The article draws on works devoted to norm-nudging and analyzing the impact of norm density on reform outcomes. Drawing on institutional theory and interdisciplinary research on norms and values, a set of cultural transformation tools is developed, along with a proposed classification and selection mechanism based on norm transmission channels and levels of social interaction. Potential failures in the design of cultural reforms are separately considered, and mechanisms for their prevention are proposed. An innovative method for gradually changing values and behavioral attitudes is proposed, based on norm density as a design parameter for cultural design. The authors not only formulate the theoretical framework for the approach but also develop a methodological foundation for empirically assessing the results of norm reform. The selection of subsystems for cultural change and norm density parameters are substantiated. The article develops a norm density index as a key parameter for cultural design methodology. Particular attention is paid to the risks and potential limitations, as well as the practical potential of C-NUDGE modeling. The results are relevant to reform designers, civil servants, and researchers in sociocultural economics.

Keywords: institutional reforms; cultural transformation; informal institutions; social norms; norm density index; norm nudging; C-NUDGE

JEL: B25, E02, E71, Z10

UDC: 330.88

DOI: 10.52342/2587-7666VTE_2026_1_39_53

 

©  I. Kapultsevich, 2026

© Institute of Economics of the Russian Academy of Sciences «Issues of Theoretical Economics», 2026

 

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Manuscript submission date: 22.10.2025

Manuscript acceptance date: 25.11.2025

 

For citation:

Kapultsevich I. Cultural Transformation as an Object of Institutional Design: Theoretical Foundations and Empirical Possibilities of C-Nudge Modeling // Voprosy teoreticheskoy ekonomiki. 2026. No. 1. Pp.39-53. DOI: 10.52342/2587-7666VTE_2026_1_39_53