Institutional economics is interested in the interactions between institutions and the economy: how institutions influence the functioning, performance, and development of the economy and, in turn, how changes in the economy influence the institutions. Institutional economics studies the impact of institutions on economy, how institutions evolve, and how they could be improved. In furthering institutional economics, more extensive exchanges between the communities of institutional economics and law and economics would be fruitful. Those interested in institutional economics should certainly be more aware of developments in law and economics and utilize these insights in their further research—and vice versa.