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The impact of institutions on the decision how to decide

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  • ENGEL, CHRISTOPH
  • WEBER, ELKE U.

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.

Suggested Citation

  • Engel, Christoph & Weber, Elke U., 2007. "The impact of institutions on the decision how to decide," Journal of Institutional Economics, Cambridge University Press, vol. 3(3), pages 323-349, December.
    • Handle: RePEc:cup:jinsec:v:3:y:2007:i:03:p:323-349_00
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    Cited by:

    1. Mieke Meurs, 2013. "What Makes a Farmer? The Limited Expansion of Commercial Farming Among Bulgarian Smallholders," Working Papers 2013-08, American University, Department of Economics.
    2. Christoph Engel & Rima-Maria Rahal, 2022. "Eye-Tracking as a Method for Legal Research," Discussion Paper Series of the Max Planck Institute for Research on Collective Goods 2022_07, Max Planck Institute for Research on Collective Goods.
    3. Christoph Engel & Wolf Singer, 2007. "Better Than Conscious? The Brain, the Psyche, Behavior, and Institutions," Discussion Paper Series of the Max Planck Institute for Research on Collective Goods 2007_24, Max Planck Institute for Research on Collective Goods.
    4. Christoph Engel, 2007. "Institutions for Intuitive Man," Discussion Paper Series of the Max Planck Institute for Research on Collective Goods 2007_12, Max Planck Institute for Research on Collective Goods.
    5. Weber, Elke U. & Johnson, Eric J., 2012. "Psychology and behavioral economics lessons for the design of a green growth strategy," Policy Research Working Paper Series 6240, The World Bank.

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    More about this item

    JEL classification:

    • D10 - Microeconomics - - Household Behavior - - - General
    • D21 - Microeconomics - - Production and Organizations - - - Firm Behavior: Theory
    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness
    • K20 - Law and Economics - - Regulation and Business Law - - - General
    • K40 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - General
    • L51 - Industrial Organization - - Regulation and Industrial Policy - - - Economics of Regulation
    • Z13 - Other Special Topics - - Cultural Economics - - - Economic Sociology; Economic Anthropology; Language; Social and Economic Stratification

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