"The Logic of the System" was originally called "The System". In May 2005, during the 100th anniversary of Fudan University, Mr. Cao Peilin's book was published by the People's Publishing House as one of the anniversary gifts. After the publication of this book, it has been welcomed by teachers, students and readers. The first edition of "The Logic of Institutions" is an excerpt compiled from Cao Peilin's past writings by his students Liu Jianjun and He Liyu to reflect the overview and process of his academic research. This updated edition is based on the first edition and mainly excerpts and supplements Mr. Cao Peilin's academic papers, essays, interviews and speeches at some academic conferences in the past ten years. The three editors Liu Jianjun, Tang Yalin, and Du Huan tried their best to maintain the original appearance of the book, supplemented each chapter based on similar themes, and expanded the last chapter into three chapters, making the original ten chapters increased to twelve. While supplementing, technical adjustments have also been made to some words, sentences and paragraphs. After the first draft was completed, Mr. Cao Peilin personally reviewed the full text and finalized it. In order to distinguish it from the first edition and highlight the core theme of this book, the title of the updated edition has been changed to "The Logic of Institutions".