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This paper introduces a methodology for strategic intervention in collective decision making.The methodology is based on (1) a decomposition of the problem into a few main controversial issues, (2) systematic interviews of subject area specialists to obtain a specification of the decision setting,consisting of a list of stakeholders with their capabilities, positions, and salience on each of the issues; (3) computer simulation. The computer simulation models incorporate only the main processes through which differences in positions and salience are accommodated in binding decisions: management of meaning through the provision of convincing information, challenges, and exchanges. The methodology generates insights into the likely outcomes of the process, the amount of conflict involved, and the stability of the outcomes.These insights and the investigation of the effects of strategic moves provide major strategic advantages to the user. This is likely to lead to a better representation of the user's own position in the decision outcomesnd the creation of a broader political and social support behind the decision outcome

The lobbying process is modelled as an auction with externalities in which lobbies bid to get implemented their most-preferred policy. Furthermore, the government may influence the lobbying process itself by biasing the auction among organized interests. We identify the following trade-off: competition yields a higher transfer to the government, but the outcome of the game tends to be less efficient than what it is when lobbies negotiate. We extend and illustrate the model by means of a public good game involving several regions. Lobbying by regions may yield a quantity of public good that may vastly differ from that chosen by a majority of regions. This is so when the regions with the highest financing shares lie at the extremes of the distribution.

The lobbying process is modelled as an auction with externalities in which lobbies bid to get implemented their most-preferred policy. Furthermore, the government may influence the lobbying process itself by biasing the auction among organized interests. We identify the following trade-off: competition yields a higher transfer to the government, but the outcome of the game tends to be less efficient than what it is when lobbies negotiate. We extend and illustrate the model by means of a public good game involving several regions. Lobbying by regions may yield a quantity of public good that may vastly differ from that chosen by a majority of regions. This is so when the regions with the highest financing shares lie at the extremes of the distribution.

The functions and powers of local self-governance are broadly discussed at all levels of government institutions,non-governmental organizations and communities. There is an expressed position that local communities andtheir local self-governing institutions should be given the power of subsidiary decision making in locally specificissues. However, year after year, the unanimous attitude is suppressed by financial and fiscal dependence upon thecentral government, unreasonably large territorial units with high population density. These circumstances limitdown the decision-making and, moreover, the implementation of the decisions. From this point of view, the financialand fiscal powers of local self-governing institutions and, consequently, the decision-making strata are significantlydifferent from those in other Baltic and Central European countries, as well as Scandinavian states. This articledeals with the analysis of local self-governing administration in terms of its fiscal and financial empowerment, thesize of the local communities and its impact on decision-making. A comparison is drawn with Scandinavian, centralEuropean and Baltic countries.

This report supplies references and comments on literature that identifies human factors influencing decision making, particularly military decision making. The literature has been classified as follows (the classes are not mutually exclusive): features of human information processing; decision making models which are not mathematical models but rather are descriptive; non- personality factors influencing decision making; national characteristics influencing decision making; personality factors influencing decision making; decision making in a military organization. The decision maker is influenced by many factors both internal to the decision maker and external to him/her. The environmental context in which a decision is made makes it difficult to associate personality traits with specific decision making behavior. Internal factors that influence decision making include limited information processing and memory capabilities. These limitations can result in biases in processing information such as anchoring (undue weight for evidence supporting(the initial hypothesis) or recency (undue weight on more recent evidence). The limitations can also result in decision making heuristics. Training and experience can lessen the effects of limited information processing and memory capabilities. The first part of the report is a summary of the findings of the literature survey. This is followed by detailed endnotes concerning the references.

Winston Churchill's characterization of the Soviet Union as a riddle wrapped in a mystery inside an enigma may overstate Western understanding of the USSR's national security decision-making. The evidence in this domain is sparse, and what we do have is incomplete. Indeed, the Soviets have taken extraordinary steps to maintain the black box that shields how and why their decisions are made. With these caveats in mind, knowledge of Soviet decision-making can be summed up in a few general statements. First, the Soviet leadership is an integrated political-military body, where political authority is dominant, but where the professional military retains an important influence. Second, the role of institutions and individuals varies within and between leaderships, according to the issue under consideration (e.g., doctrine, procurement, etc.), and between times of peace and war. The potential for evolution in the roles of institutions is particularly apparent in the current period of "perestroika." Gorbachev has initiated changes that appear to be aimed at transforming the security decision-making apparatus. Finally, the historical record of decision-making in superpower crises indicates that the Soviet Union has been very cautious in confrontations with the United States, a tendency that need not prove true in future clashes.

The purpose of this project is to describe and explain the foreign investment decision process in the uncertain and turbulent environment of transition economy. By getting an in-depth understanding of how decision-making works in the environment of transition economy, the study intends to contribute to the development of business administration theory in the area of foreign investment decision-making, particularly its application in the turbulent and uncertain world. Theoretical 'blocks', elaborated on the basis of literature study, include the following concepts: the framework of transition economy; initial motivation (or reasons) of companies to make foreign direct investments (FDI); investigation of the investment climate and information collection methods; project evaluation and investment decision criteria; risk assessment factors and risk reduction measures. Transition economy is defined in the study as 'a non-planned, non-market economy' where the new emerging market institutions coexist with the bureaucracy and hierarchy inherited from the old administrative system. Investment projects, therefore, should probably be seen as being under institutional influence from both the local (i.e. transition economy) and the Western investor's home country environments. The empirical data presented in the paper also shows that it is necessary to establish the relevant economic, legal, political and social institutions in order to attract FDI. The study further includes the analysis of the main components and features of transition economies and their influence on FDI decision-making. One of the results of the study is that FDI decision-making in transition economies is largely consistent with different theoretical approaches suggested in the literature. On the other hand, the empirical support obtained for different theoretical approaches is often questionable and opened to alternative interpretations. The presented project suggests that theoretical perspectives do not preclude each other, but rather have a complimentary character. The study attempts to contribute to the mainstream FDI theories through a firm-level approach based on the case studies. Two in-depth case studies are presented in the paper: Ericsson's direct investments in Russia and Vattenfall's investments in the Baltic countries. A formal questionnaire based on the parameters of theoretical 'blocks' was created and 25 top executives from Ericsson and Vattenfall who participated in FDI decision-making were surveyed. The empirical investigation took place during the period 1997 - 1998 with partial updating of the cases during the year 2000. The study shows that where companies confront stable environments, investment decision routines and procedures will be less necessary and important than where market uncertainty is high. The strong appreciation of the local business partners for properly done investment calculations increases the importance of capital budgeting in transition economies more than in developed market economies. Besides, traditional investment appraisal methods provide managers with an 'objective' or 'materialistic' feedback for the decision-making in the rapidly changing uncertain environment. On the other hand, the study emphasises the importance of strategy over financial techniques and argues that FDI decisions in transition economies should be based on methods consistent with the company's long-term objectives. In case of permanent changes, new approaches as well as better co-ordination of traditional techniques with strategic, political, historical, geographical and cultural issues are required. Ericsson' s direct investments in Russia are presented in the paper in connection with other factors: the company's historical involvement in Russia, marketing strategy, human resource development, privatisation and restructuring of the telecommunication sector in Russia, etc. Nordic Electric Power Co-operation (Nordel), the EU' s decision in 1996 to create an internal electricity market in Europe, Baltic ring study, future plans to privatise the energy companies in the Baltic countries, etc., are the framework to present the second case. An application of project evaluation and risk assessment techniques for broader and more complicated environments shows that investment decision-making is probably as much, if not more, a social, political and cultural technology as an economic one. The study argues then that the rational choice decision-making model often co-exists with alternative models elaborated in social science - limited rationality, political and garbage can. According to the empirical data, the investment decisions are largely based on intuition, business experience and judgement, personal contacts with representatives from the local country, and these investment criteria are inevitable and acceptable in a situation of total chaos and permanent change. The right chosen partner, for example, is one of the major criteria for the success of the investment project in a transition economy. One of the outcomes of this study is that the revitalised form of investment decision-making will differ rather markedly from much of what has gone before: less emphasis on the quantitative aspects of capital budgeting, more on the qualitative aspects of companies and investment environment. The project also argues that determinants, approaches and criteria of investment activity in transition economies are largely consistent with patterns observed in other parts of the world. A few specific environmental conditions of transition economies, however, are shown in the study to affect the pattern of FDI decision-making. The level of turbulence is still different compared to the developed market economies due to uncertainties and unpredictibilities associated with environment of transition economies. Other major differences are the large power distance with authoritarian leadership, strong hierarchy and bureaucracy as well as the vital role of personal contacts in transition economies. It is not clear, however, if these features of transition economies should be seen as inherited from the past communist system or as an alternative way to organise the economic actors through networks, a way that is natural and appropriate for the majority of Asian societies.

Abstract: Policy-related research in general, and Impact Assessments in particular, are too loosely connected to decision-making processes. The result is often sub-optimal or even undesirable, as one of two situations arises: 1) much research is done; however, those with the real power to make decisions do not make use of all of the resulting information, or 2) advocates of contrary opinions struggle with each other, using policy-related research as ammunition. To avoid these unwanted situations, the connection between the world of knowledge and the world of decisionmaking should be carefully constructed, by connecting the process of decision-making to the academic research and carefully developing research goals in response to the demands of decision-makers. By making these connections in a stepwise manner, knowledge may generate new insights and views for involved decision-makers and stakeholders, thus changing perceptions and problem definitions. In this way, these actors learn about the possibilities of several alternatives as well as each other's perceptions, and thus can make educated decisions leading to the most desirable and socially acceptable solution. The way this proposed method works is illustrated using two cases in The Netherlands: the project "Mainport Rotterdam" (the enlargement of the port of Rotterdam), the project "A fifth runway for Amsterdam Airport (Schiphol)".

One of the main objects of the recently developed policy for Dutch higher education regards the creation of a more diversified higher education system with flexible and adaptive institutions. The nature of the proposed system should, among other things, reveal itself in meaningful and discriminating institutional profiles, based on strategic institutional choices. This article reflects on the degree to which these objects are realized. After the introduction of the new planning system in Dutch higher education, the article deals with the possibility of strategic planning in higher education institutions in general. Three different, but not necessary independent, models are distinguished: the linear strategy model, the adaptive strategy model and the interpretive strategy model. It is argued that the latter model can be applied best to higher education institutions. Some evidence on strategic planning in Dutch higher education illustrates the practice in this field. Empirical evidence shows that the governmental aim to increase the diversity in Dutch higher education is not very successful up till now. On the contrary, it seems that various homogenizing developments emerge. The concept of institutional isomorphism helps to explain some of the problems institutions encounter when trying to formulate and implement their strategies.

The purpose of this project is to describe and explain the foreign investment decision process in the uncertain and turbulent environment of transition economy. By getting an in-depth understanding of how decision-making works in the environment of transition economy, the study intends to contribute to the development of business administration theory in the area of foreign investment decision-making, particularly its application in the turbulent and uncertain world. Theoretical 'blocks', elaborated on the basis of literature study, include the following concepts: the framework of transition economy; initial motivation (or reasons) of companies to make foreign direct investments (FDI); investigation of the investment climate and information collection methods; project evaluation and investment decision criteria; risk assessment factors and risk reduction measures. Transition economy is defined in the study as 'a non-planned, non-market economy' where the new emerging market institutions coexist with the bureaucracy and hierarchy inherited from the old administrative system. Investment projects, therefore, should probably be seen as being under institutional influence from both the local (i.e. transition economy) and the Western investor's home country environments. The empirical data presented in the paper also shows that it is necessary to establish the relevant economic, legal, political and social institutions in order to attract FDI. The study further includes the analysis of the main components and features of transition economies and their influence on FDI decision-making. One of the results of the study is that FDI decision-making in transition economies is largely consistent with different theoretical approaches suggested in the literature. On the other hand, the empirical support obtained for different theoretical approaches is often questionable and opened to alternative interpretations. The presented project suggests that theoretical perspectives do not preclude each other, but rather have a complimentary character. The study attempts to contribute to the mainstream FDI theories through a firm-level approach based on the case studies. Two in-depth case studies are presented in the paper: Ericsson's direct investments in Russia and Vattenfall's investments in the Baltic countries. A formal questionnaire based on the parameters of theoretical 'blocks' was created and 25 top executives from Ericsson and Vattenfall who participated in FDI decision-making were surveyed. The empirical investigation took place during the period 1997 - 1998 with partial updating of the cases during the year 2000. The study shows that where companies confront stable environments, investment decision routines and procedures will be less necessary and important than where market uncertainty is high. The strong appreciation of the local business partners for properly done investment calculations increases the importance of capital budgeting in transition economies more than in developed market economies. Besides, traditional investment appraisal methods provide managers with an 'objective' or 'materialistic' feedback for the decision-making in the rapidly changing uncertain environment. On the other hand, the study emphasises the importance of strategy over financial techniques and argues that FDI decisions in transition economies should be based on methods consistent with the company's long-term objectives. In case of permanent changes, new approaches as well as better co-ordination of traditional techniques with strategic, political, historical, geographical and cultural issues are required. Ericsson' s direct investments in Russia are presented in the paper in connection with other factors: the company's historical involvement in Russia, marketing strategy, human resource development, privatisation and restructuring of the telecommunication sector in Russia, etc. Nordic Electric Power Co-operation (Nordel), the EU' s decision in 1996 to create an internal electricity market in Europe, Baltic ring study, future plans to privatise the energy companies in the Baltic countries, etc., are the framework to present the second case. An application of project evaluation and risk assessment techniques for broader and more complicated environments shows that investment decision-making is probably as much, if not more, a social, political and cultural technology as an economic one. The study argues then that the rational choice decision-making model often co-exists with alternative models elaborated in social science - limited rationality, political and garbage can. According to the empirical data, the investment decisions are largely based on intuition, business experience and judgement, personal contacts with representatives from the local country, and these investment criteria are inevitable and acceptable in a situation of total chaos and permanent change. The right chosen partner, for example, is one of the major criteria for the success of the investment project in a transition economy. One of the outcomes of this study is that the revitalised form of investment decision-making will differ rather markedly from much of what has gone before: less emphasis on the quantitative aspects of capital budgeting, more on the qualitative aspects of companies and investment environment. The project also argues that determinants, approaches and criteria of investment activity in transition economies are largely consistent with patterns observed in other parts of the world. A few specific environmental conditions of transition economies, however, are shown in the study to affect the pattern of FDI decision-making. The level of turbulence is still different compared to the developed market economies due to uncertainties and unpredictibilities associated with environment of transition economies. Other major differences are the large power distance with authoritarian leadership, strong hierarchy and bureaucracy as well as the vital role of personal contacts in transition economies. It is not clear, however, if these features of transition economies should be seen as inherited from the past communist system or as an alternative way to organise the economic actors through networks, a way that is natural and appropriate for the majority of Asian societies.

What is the structure of the political space in which decision-making actors operate in the European Union? Are there consistent alignments of actors? This article addresses these questions by examining a new data set containing information on the preferences of the Commission, the Member States and the European Parliament on 174 issues raised during talks on 70 recent Commission proposals. To a limited extent, the preference alignments can be described in terms of two underlying dimensions. However, these conceptual structures are weak. The first dimension is defined by the position of the European Commission and European Parliament at one end and the reference point at the other; the second dimension by a division between the Northern and Southern Member States. The meaning of these dimensions is investigated by identifying the substance of the policy issues on which these actor alignments are found. The Commission-reference point dimension is interpreted in terms of policy change rather than, as has previously been suggested, the level of integration. The North-South dimension corresponds to diverging views on the use of regulatory versus market-based solutions to policy problems. The weakness of these conceptual structures, it is argued, is due to the sectoral nature of European Union decision making. This lack of structure is likely to have a positive effect on support for the system among its members, since the benign effects of ideology at the national level cannot be expected to apply at the European Union level.

Decisions to invest in information systems (IS) are made by many organisations on a very regular basis. Such decisions can vary from quickly identifying the problem, screening options and choosing a solution in a very straightforward way, to very extensive and repeated search, screen, design and negotiation activities which can take many years. There has been little explicit research into the process by which managers and organisations decide to develop IS applications. This research addresses this by analyzing 20 IS decision-making processes, using a phase-based as well as an attribute-based approach. Mintzbergs typology is used to characterize seven types of IS decisions from a phase-based or process-based perspective. For the attribute approach, the decisions have been analyzed on the basis of subjective/objective and offensive/defensive contrasts and placed in one of four categories: innovative, rational, necessary or political. The paper concludes by identifying five factors that result in major differences in IS decision-making processes. These issues are: (1) whether there is scope to design a solution, (2) whether distinct alternatives have to be searched for, (3) the degree of urgency and necessity from the perspective of the decision-makers, (4) whether the decision can be subdivided in order to follow a gradual process path (planned versus incremental) and (5) the number and power of stakeholders involved in the process and the extent that their interests vary and contrast. The paper suggests that managers deciding on IS applications should be aware of these factors in order to design a process that fits best with the specific circumstances: no single process should be considered universally applicable. This conclusion is in contrast with many decision-making models rooted in the MIS-field, which suggest to use prescriptive and rational approaches to organise IS decision-making processes.

Organic organizations rely little on formalization in its classical meaning. Instead, behaviour is governed and expectations are generalized with means that Etzioni has classified as identitive power. Bureaucracies are characterized partly by their use of coercion and purchase (utilitarian power) of motivation of its members, while organic, empowering, flat, learning organizations tend to use symbols that do not constitute threats or rewards as means of motivating members. Instead members are motivated, or committed, by personal identification with the organizational identity. This form of motivation can be compared with rule-based or identity-driven decision-making, by which organizational decisions are guided by organizational and personal identities rather than by a calculation of preferences and expected outcomes. In this paper, three decision-making problems are identified that are caused by improperly functioning differentiation between personal identities of organizational members and organizational identities when identities are the basis for both motivation and bounded rationality (decision-making).

Two dynamic models of collecuve decision maklng are Introduced and lllustrated wlth a simple example. A more extensive presentation and appllcauon concerning the European Community can be found In Bueno de Mesqulta and Stokman (19941. The two dynamlc models reflect two alternative views of collective decision making and politics. The flrst, represented In Ule expected utility model, conceives of collective decision making as conflict resolution, a non-cooperative game, fundamentally different from exchange relaUons In economics. The second. represented in the exchange model of Stokman and Van Oosten (19941, does not see fundamental differences between economic exchanges and political decision making. Dynamic Models. Collective Decision Making. Conflict Resolution, Economlc Exchange Relations.

We study a model of collective decision making with endogenous information collection.Agents collect information about the consequences of a project, communicate, and then vote onthe project. We examine under what conditions communication may increase the probability thatgood decisions are made. Our most surprising result is that when there are no direct cost ofcommunication and communication can only help to identify the truth, more communication may reducethe probability that a correct decision is made. The reason for this result is that communicationmay aggravate the free-rider problem associated with collecting information.