Question

Informal institutions require what type of "supporting pillar(s)?"
a. Normative and cognitive
b. Regulatory
c. Regulatory and normative
d. Normative

Answer 1

I think the answer is A: normative and cognitive.

The normative pillar is about how the values, beliefs, and actions of other relevant players - collectively known as norms - influence the behavior of focal individuals and firms. And the cognitive pillar is composed by the internalized (or taken-for-granted) values and beliefs that guide individual and firm behavior.