Think of a funnel. What is its shape? What does it do? It has a large end, larger and larger that allows many elements to pass through, such as grains of sand or kernels of rice; and it has a narrow end, narrowing to block the passage to most of them; funnel has a simple but useful function: it serves to pour a big mass of parts into a container with a small opening. This is, when you think about it, the same principle behind human information processing and knowledge management. This paper proposes a funnel-shaped conceptual framework, that integrates three dimensions of knowledge: complexity; intelligibility; innovability; as the three dimensions of the funnel. Such framework provides a more comprehensive form of understanding complex institutions, both political and economic. It highlights, also, the interaction between information and institutions, and how it can impact human behaviour.