the iad framework helps to perceive complex collective action problems by dividing them into 'action arenas', that are smaller pieces of practically understandable function. the analyst assumes that the structure of the action situation is fixed in the short-term. for an action situation to exist, there must be "actors in positions" (the number of possible roles that are available in this recurring interaction situation). actors have choices within the existing (rule) structure. in the study of outcomes from collective choice situations, actors are influenced by the institutional arrangements, the socio-economic conditions, and the physical environment. the institutional arrangements can be studied by seven rule types (as per below).