The Impact of Institutions on the Decision How to Decide
25 Pages Posted: 6 Oct 2006 Last revised: 31 Jul 2015
Date Written: August 1, 2006
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 fulfill 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.
Keywords: Decision Making, Problem Solving, Institutions
JEL Classification: D10, D21, D83, K20, K40, L51, Z13
Suggested Citation: Suggested Citation