A lot of data interpreted by the right kind of theory was required before Lin Ostrom's could identify the eight ingredients that enable groups to manage their own affairs. A warning is in order before I proceed: After you learn them, you are likely to think "Of course! Aren't these obvious?" The answer is "Only in retrospect". The ingredients did not emerge from neoclassical economic theory, a long intellectual journey was required for Lin to discover them, and all successful explanations, obvious or not, must be understood in terms of a formal theoretical framework. Without further ado, here is Lin Ostrom's recipe for success, taken from the final chapter of her book Understanding Institutional Diversity. 1) Clearly Defined Boundaries. The identity of the group and its rights to the common resource must be clearly delineated.