The Impact of Institutions on the Decision How to Decide
AbstractThe human mind is not a general problem solving machine. Instead of deliberately, consciously and serially processing the available information, men can rely on routines, rules, roles or affect for the purpose. They can bring in technology, experts or groups. For all of these reasons, men have a plurality of problem solving modes at their disposition. Often, the meta-choice of problem solving mode matters for behavioural output. Some performance standards are only to be met if a certain problem solving mode is used, like a well-established skill. Other requirements are easier to fulfil with some problem solving modes. This explains why institutions frequently impact on the choice of problem solving mode. To show how institutions are able to do that, a model of problem solving modes is developed. It allows to systematise the access points for institutional intervention.
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Bibliographic InfoPaper provided by Max Planck Institute for Research on Collective Goods in its series Working Paper Series of the Max Planck Institute for Research on Collective Goods with number 2006_19.
Length: 25 pages
Date of creation: Aug 2006
Date of revision:
Decision Making; Problem Solving; Institutions;
Other versions of this item:
- 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(03), pages 323-349, December.
- D10 - Microeconomics - - Household Behavior - - - General
- D21 - Microeconomics - - Production and Organizations - - - Firm Behavior: Theory
- D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search, Learning, and Information
- 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; Social and Economic Stratification
This paper has been announced in the following NEP Reports:
- NEP-ALL-2006-10-21 (All new papers)
- NEP-CBE-2006-10-21 (Cognitive & Behavioural Economics)
- NEP-KNM-2006-10-21 (Knowledge Management & Knowledge Economy)
- NEP-LAW-2006-10-21 (Law & Economics)
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