What name is given to the formal arrangements that society creates to support economic and social functions?

The term "institutions" refers to the well-established, formal arrangements created by society to facilitate economic and social functions. These institutions encompass a broad range of entities, including legal systems, educational organizations, and economic frameworks that govern interactions within a community or society. Institutions are critical because they provide the rules and norms that influence behavior, shape economic policies, and support social stability.

Understanding this concept is vital in the context of real estate, as various institutions enforce property laws, zoning regulations, and market practices that affect real estate transactions. An effective grasp of what constitutes an institution helps in analyzing how different aspects of the real estate market operate within a societal framework. Other terms, such as "agencies," "structures," or "networks," do not capture this formal arrangement aspect as comprehensively or accurately as institutions do.