[Institutions] are perfectly analogous to the rules of the game in a competitive
team sport. That is, they consist of formal written rules as well as typically unwritten
codes of conduct that underlie and supplement formal rules ... The rules
and informal codes are sometimes violated and punishments are enacted.
Therefore, an essential part of the functioning of institutions is the costliness of
ascertaining violations and the severity of punishment. (North, 1990: 4)