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The impact of institutions on the decision how to decide

Published online by Cambridge University Press:  01 December 2007

CHRISTOPH ENGEL  and
ELKE U. WEBER
CHRISTOPH ENGEL*
Affiliation:
Max Planck Institute for Research on Collective Goods, Bonn, Germany and Columbia University, Business School, New York City, USA
ELKE U. WEBER
Affiliation:
Max Planck Institute for Research on Collective Goods, Bonn, Germany and Columbia University, Business School, New York City, USA
*
*Correspondence to: Email: engel@coll.mpg.de
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Abstract:

Institutions influence and shape behaviour. This paper suggests one way in which they do so that has been largely overlooked in institutional analysis and design. When faced with a decision or problem, people have more than one mechanism at their disposition for addressing it. The human mind offers multiple tools, ranging from conscious deliberation to spontaneous, affective reactions. Relying on technology or experts, decision-makers can also muster additional resources. Often, the meta-choice of which decision-making or problem-solving mode is used has an impact on the output. Some normative goals are more likely met if the decision-maker uses a specific problem-solving mode. We argue that the meta-choice of which problem-solving mode to use for a given decision can be influenced by institutions. In the interest of defining access points for institutions, we develop a conceptual framework for the selection and implementation of decision-making and problem-solving modes.

Type
Research Article
Information
Journal of Institutional Economics , Volume 3 , Issue 3 , December 2007 , pp. 323 - 349
Copyright
Copyright © The JOIE Foundation 2007

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