What are the characteristics of informal institutions?

Informal institutions are unwritten rules and norms that shape social behavior and interactions within a society. They are characterized by their flexibility, adaptability, and local contextuality, often deriving from cultural practices, traditions, and social networks. Unlike formal institutions, which are codified and enforced through laws, informal institutions rely on social consensus and community enforcement. These institutions can significantly influence economic, political, and social outcomes by shaping individuals' expectations and behaviors.