The typical strategy of dealing with the challenge of heterogeneity is easily one of the main assumptions that the Ostrom project challenged. The homogenization by assumption of social agents, the rhetorical trick by which homogeneity is nominally recognized as a fact and a problem but then, in the next move, reduced to a modal profile, a homogenous “representative agent,” with minimalist formal features, is both popular and influential. Versions of this strategy, operating at different levels and on different aspects of heterogeneity, are prevalent, from economics and public choice to political science and social philosophy. The logic of Ostrom’s perspective challenges that approach. Furthermore, it explicitly links the problem of heterogeneity to that of institutional diversity: Because institutional arrangements in any society emerge largely as a response to heterogeneity, and in their turn are conditions of heterogeneity, institutional diversity should be a central (if not the central) theme of institutional theory. Yet, that doesn’t seem to be the case in much of the literature. Models of “markets and hierarchies” remain pivotal, although the theoretical lenses of the theory of the market or the theory of the state are obviously incapable of capturing and illuminating the wide diversity of existing and possible institutional arrangements. A replacement of the classical dichotomous typology (markets and states) with a new trinity (markets, states, and networks) is not an adequate solution. By refusing to accept such solutions, the Ostromian approach looks commonsensical. Yet, when compared to the prevalent views, it is radical. Bloomington institutionalism is ready to take institutional diversity seriously – “beyond the Market and the State,” “beyond Hobbes and Smith” – and to follow to the end its analytical and normative logic.