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The following is a passage from an article on The Hollywood Walk of Fame:

However, receiving a star on the famed walk isn't all, well, receiving. It turns out it actually costs you money. Or at least it costs the person or entity nominating you.

This fee was instituted in 1980 at $2,500 to fund the walk's upkeep and minimize taxpayer burden. As of 2012, this fee had reached $30,000.

I've looked up the word on Dictionary.com and it seems there are several definitions(def.1-4) that could fit the context, but is there a specific one that's most appropriate? The definitions of institute from Dictionary.com are:

verb (used with object)
1. to set up; establish; organize: to institute a government.
2. to inaugurate; initiate; start: to institute a new course in American literature.
3. to set in operation: to institute a lawsuit.
4. to bring into use or practice: to institute laws.
5. to establish in an office or position.
6. Ecclesiastical . to assign to or invest with a spiritual charge, as of a parish.

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All four of those seem pretty similar. I'd pick 2 if I really had to choose, but I think the general definition from http://www.merriam-webster.com/dictionary/institute is best:

to begin or create (something, such as a new law, rule, or system)

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    The meanings of dictionary definitions often overlap. Unless you've taking a test where the problem is to pick the right definition, I wouldn't worry about picking exactly which of several very similar dictionary definitions applies. – Jay Dec 10 '13 at 21:15

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