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The Institutional Economics of Stakeholder Consultation; Reducing Implementations Costs through 'Matching Zones'

Author

Listed:
  • Frank A.G. den Butter

    (VU University Amsterdam)

  • Sjoerd ten Wolde

    (VU University Amsterdam)

Abstract

This paper discusses various ways to organise these consultations, so that a compromise agreement is reached on the solution of the (re)distribution problem. These institutionalised structures of consultation are referred to as 'matching zones' here. Practical experiences, mainly from the Netherlands, provide guidelines for the effective institutional setup of such 'matching zones'. Specifically, the design of a 'matching zone' should try to adhere to the following principles: (i) there should be a common interest and ample incentives for consensus; (ii) there should be the prospect of long, repeated interaction; (iii) there should be a balance between representation and efficiency; (iv) the constraints should be clear from the onset of the matching zone; (v) fairness should be strived for; (vi) IC technology should be utilised optimally; and (viii) informal contacts and an amicable atmosphere should be promoted. See also F.A.G. den Butter, S.A. ten Wolde (2014), The institutional economics of stakeholder consultation; how experts can contribute to reduce the costs of reaching compromise agreements. In C. Martini & M. Boumans (Eds.), Experts and Consensus in Social Sciences (Ethical Economy, Vol. 50) (pp. 17-48). New York: Springer.

Suggested Citation

  • Frank A.G. den Butter & Sjoerd ten Wolde, 2011. "The Institutional Economics of Stakeholder Consultation; Reducing Implementations Costs through 'Matching Zones'," Tinbergen Institute Discussion Papers 11-162/3, Tinbergen Institute.
    • Handle: RePEc:tin:wpaper:20110162
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    References listed on IDEAS

    as
    1. R. Isaac & Deborah Mathieu & Edward Zajac, 1991. "Institutional framing and perceptions of fairness," Constitutional Political Economy, Springer, vol. 2(3), pages 329-370, September.
    2. Frank A.G. den Butter, 2010. "Transaction Management: Value Creation by Reducing Transaction Costs," Tinbergen Institute Discussion Papers 10-051/3, Tinbergen Institute.
    3. Frank A.G. den Butter & Robert H.J. Mosch, 2003. "The Dutch Miracle: Institutions, Networks, and Trust," Journal of Institutional and Theoretical Economics (JITE), Mohr Siebeck, Tübingen, vol. 159(2), pages 362-391, June.
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    Keywords

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    JEL classification:

    • D23 - Microeconomics - - Production and Organizations - - - Organizational Behavior; Transaction Costs; Property Rights
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • D74 - Microeconomics - - Analysis of Collective Decision-Making - - - Conflict; Conflict Resolution; Alliances; Revolutions
    • H11 - Public Economics - - Structure and Scope of Government - - - Structure and Scope of Government

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