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The Impact of Institutions on the Decision How to Decide

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Author Info
Christoph Engel () (Max Planck Institute for Research on Collective Goods, Bonn)
Elke U. Weber () (Columbia University, Professor of Psychology and Management)

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Abstract

The 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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Publisher Info
Paper 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.

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Length: 25 pages
Date of creation: Aug 2006
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Handle: RePEc:mpg:wpaper:2006_19

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Related research
Keywords: Decision Making Problem Solving Institutions

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Find related papers by JEL classification:
D10 - Microeconomics - - Household Behavior - - - General
D21 - Microeconomics - - Production and Organizations - - - Firm Behavior
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 - - - Social Norms and Social Capital; Social Networks Economic Anthropology

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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
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  3. Hall, Peter A. & Rosemary C. R. Taylor, 1996. "Political Science and the Three New Institutionalisms," MPIfG Discussion and Working Papers 6, Max Planck Institute for the Study of Societies. [Downloadable!]
  4. Ashton, Robert H., 1992. "Effects of justification and a mechanical aid on judgment performance," Organizational Behavior and Human Decision Processes, Elsevier, vol. 52(2), pages 292-306, July. [Downloadable!] (restricted)
  5. Hodgson, Geoffrey M., 2004. "Reclaiming habit for institutional economics," Journal of Economic Psychology, Elsevier, vol. 25(5), pages 651-660, October. [Downloadable!] (restricted)
  6. Christine Jolls & Cass R. Sunstein, 2006. "Debiasing through Law," Journal of Legal Studies, University of Chicago Press, vol. 35, pages 199-242. [Downloadable!]
  7. Smith, Vernon L, 1991. "Rational Choice: The Contrast between Economics and Psychology," Journal of Political Economy, University of Chicago Press, vol. 99(4), pages 877-97, August. [Downloadable!] (restricted)
  8. Smith, Vernon L, 1994. "Economics in the Laboratory," Journal of Economic Perspectives, American Economic Association, vol. 8(1), pages 113-31, Winter. [Downloadable!] (restricted)
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Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Christoph Engel & Wolf Singer, 2007. "Better Than Conscious? The Brain, the Psyche, Behavior, and Institutions," Working Paper Series of the Max Planck Institute for Research on Collective Goods 2007_24, Max Planck Institute for Research on Collective Goods. [Downloadable!]
  2. Christoph Engel, 2007. "Institutions for Intuitive Man," Working Paper Series of the Max Planck Institute for Research on Collective Goods 2007_12, Max Planck Institute for Research on Collective Goods. [Downloadable!]
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