PHILIPPE AGHION Harvard University, USAMASAHIKO AOKI Stanford University, USAKEN BINMORE University College London, UKHERBERT GINTIS University of Massachusetts, USA; Sante Fe Institute, USAGEOFFREY M. HODGSON University of Hertfordshire Business School, UKTHORBJØRN KNUDSEN University of Southern Denmark, DenmarkTIMUR KURAN University of Tokyo, JapanEDMUND S. PHELPS Cornell University, USAYINGYI QIAN University of California, Berkeley, USAJOE SWIERZBINSKI University of Aberdeen Business School, UKJINGLIAN WU Development Research Center, Beijing, China; China-Europe International Business School, Shanghai, China

• Introduction; J.Kornai, L.Mátyás & G.Roland The Great Transformation of Central-Eastern Europe: Success and Disappointment; J.Kornai Transformation in China; Y.Qian & J.Wu Institutional Causes of Economic Underdevelopment in the Middle East: An Historical Perspective; T.Kuran Understanding the Great Changes in the World: Gaining Ground and Losing Ground since World War II; E.S.Phelps The Schumpeterian Approach to Education and Growth; P.Aghion Analyzing Institutional Change; M .Aoki Fast-Moving and Slow-Moving Institutions; G.Roland The Endowment Effect and the Origin of Private Property; H.Gintis The Complex Evolution of a Simple Traffic Convention: The Functions and Implications of Habit; G.M.Hodgson & T.Knudsen Implications of Behavioural Game Theory for Neoclassical Economic Theory; H.Gintis A Little Behavioralism Can Go a Long Way; K.Binmore & J.Swierzbinski