Evolutionary economics shows how rational behavior evolves without assuming that individuals are rational. Evolutionary game theoretic models of social cooperation assume that individuals are egoistic. However, as indirect game theoretic models show, the evolutionary framework can be applied to the changes of emotions and norms among actors who have purposes and pursue those purposes in rational manners. Effective institutions exist as shared beliefs among human actors regarding what behaviors are required, permitted, or prohibited. In that sense, institutions comprise evolutionary environment of human social behavior.