More Complex Decisions → More Decision Makers?
The complexity and interdependence of a decision problem can influence how many people should participate in decision making.
The complexity and interdependence of a decision problem can influence how many people should participate in decision making.
As the number of decision makers increases, organizations must adapt how they collect, share, and synthesize information to maintain decision quality.
Accountability tends to decline as the number of decision makers increases unless explicit mechanisms counteract it. When and why is this the case?
Which factors help reach consensus? And which factors make consensus less likely?
App helps determine if a decision situation requires consensus, and if so, what kind of consensus.
The app helps identify the voting rule that best fits a decision situation.
What are the common elements among consensus-seeking decision procedures? Why do such procedures differ?
Understanding what consensus is—and when it is worth the cost of pursuing—matters for anyone designing or participating in collective decisions.
If a group needs to vote, how should they choose between different ways to vote? The text covers common voting procedures and uses four case studies for illustration.
How does decision speed vary with the number of decision makers and what governance mechanisms allow an organization to manage this relationship?
What are the differences in coordination and communication costs between having 1, 5, 100, and 1000 decision makers in a process to select new product investments?
This text compares four distinct cases of allocating decision authority – 1, 5, 20, and 100 decision makers – for a hypothetical mid-sized firm revising its product investment process.
This text gives an overview of mechanisms by which credibility is reduced, during decision making that involves citizen participation. A hypothetical story of a participation process gone wrong is used as an example.
What are the typical citizen participation decision making processes? What is common and different across these processes? What implications do these differences have on decisions?
A reputation mechanism condenses specific information that influences one’s predictions of the behavior of others. What other related mechanisms condense information that is useful when predicting behavior of others?
The degree of complexity in a decision matters because it determines not only the cost of reaching an outcome, but also the kinds of governance mechanisms that need to be in place to guide and monitor the process.
A reputation mechanism reshapes both the design of decision processes and the behavior of decision makers by shifting the basis of authority, incentives, and accountability.
Bureaucracy remains one of the most enduring forms of coordination. Understanding how decision rights are structured within bureaucracies helps explain both their resilience and their shortcomings.
To establish a formal reputation mechanism in a group, six conditions must be met: observable actions, information transmission, information persistence, repeat interaction or interdependence, shared evaluation criteria, and consequences based on reputation.
Reputation mechanisms for information-rich transactions should prioritize interpretation and context, while those for information-poor transactions must emphasize completeness and trust signals.
Reputation mechanisms for asset-specific transactions must prioritize long-term reliability and relationship signaling, while those for generic transactions can focus on short-term performance metrics and broad comparability.
Reputation mechanisms for spot transactions must focus on immediate trust cues, while mechanisms for repeated transactions should emphasize long-term behavioral consistency and relationship building.
Market transactions are structured by price and competition; non-market transactions rely on norms, roles, and relationships—so reputation must serve different goals in each.
When designing a reputation mechanism, what are the basic questions to consider?
How is transparency defined across different research disciplines? What influences level of transparency and, in turn, what does the level of transparency influence?
What properties should a decision process have, to justify full transparency of all decision information?
Transparency can help trust and accountability. However, it comes with risks. What are the pros and cons of increasing transparency through decision governance?
Governance has a cost, so we need to know and measure its benefits. This text adapts adapts ideas from the measurement of quality of political governance to decision governance in a firm.
This text outlines and illustrates eight mechanisms of governance change.
We explore what happens if the higher reputation increases an agent’s probability to fulfill its promises.
What if fulfilling a promise increases an agent’s reputation? The framework in this text captures this idea.
The text presents a framework in which reputation is a function of promises between agents. The framework can be used to create a reputation mechanism to use in decision processes, in multi agent systems, and so on.
How is the common sense concept of promise related to decision making behavior in economics?
In a group, which factors influence the group’s perception of a decision maker’s reputation? How is that perception formed?
Which psychological factors influence the perceived motivation of a decision maker, why, and how?
Reputation is generally defined as the collective perceptions, evaluations, and beliefs that a social group holds about an individual, organization, or entity. How is decision making different if the decision maker has high or low reputation?
Commitment mechanisms are strategies, agreements, or institutional arrangements deliberately established to ensure adherence to decisions made at an earlier time. How to design them?
When is it valuable to destabilize preferences? How can decision governance be used to do it?
When is it valuable for the decision maker to have stable preferences? Which factors can destabilize preferences? How can preferences be stabilized through decision governance?
An individual’s values, among other factors, influence the preferences that they will have over options in a decision situation. How?
Unlike technical trade-offs, value conflicts involve deeply held beliefs that resist simple calculation. What is a value conflict? And how can a decision-maker know that they are facing a value conflict?
Several psychological and sociological mechanisms have been proposed to explain the formation and change of values in individuals. What variables and relationships do these mechanisms highlight?
Values influence moods, attitudes, and emotions in decision-making. Why and how does this occur?
How public expectations form is interesting for decision governance because they concern decision situations in which there is considerable distance between stakeholders and decision makers. How do expectations form about distant decision makers?
Values influence attitudes, behaviors, and decision-making processes by providing a sense of what is important. How does this influence decision making?
When we are in a decision situation with others, we form expectations about their behaviour, which becomes an input to our own subsequent decisions and interactions with them. How do these expectations form?
If we want to influence the expectations someone forms in a decision situation, we need to start with an understanding of what an expectation may be.
Competence plays a significant role in shaping authority and influence in group decision-making. Individuals perceived as competent often hold greater decision-making power, influence group consensus, and guide the strategic direction of collective choices. Why is this common?
Attitude is a stable, learned predisposition to respond favorably or unfavorably toward an object, person, or situation. How does attitude influence decision making?
The ability to make effective decisions is closely linked to an individual’s expertise, cognitive abilities, and confidence in their knowledge. Why and how is this the case?