General Principles of Institution Design -- The Three Conditions for Behavior -- Observers -- Promoters -- Behavior Suppressors -- The Sun Diagram and the Five Basic Institution Structures -- Institutions of Behavior Management -- Behavior probability under the Behavioral Management Institution -- Task Sharing and Delegation Institutions -- Benefit Distribution Institution-Competitive Institution.

This book discusses a development in institutional economics and management science, which provides engineering methods for institution design. Based on the “Sun Diagram” created by the author, it uses graphics and calculations to explain that there are only five fundamental management institution structures, each of which has a particular management effect. It also demonstrates that production activities should be managed with different institutions according to the differences in externalities. This significant book suggests ways of using institution design to tackle the key challenges faced by societies today, such as environmental pollution, over-consumption of natural resources, carbon emissions, world peace issues and stagnating productivity levels.