The goal of discourse-based decision-making is to free negotiations from self-interested, strategic interactions. In this paper it is argued that the absence of interests may lead to both efficiency losses and redistribution between participants of the discourse and outsiders. The latter effect is the stronger, the more personal relationships between discourse participants become. Therefore, it is essential to validate the recommendations arrived at in discourses in democratic decision-making processes that are driven by competition between different points of views and interests.

Referendums have experienced some sort of a comeback. Citizen involvement in political decisions is seen increasingly as a healthy add-on in democratic polities. While earlier writers on democratic theory often saw a danger in increased participation of citizens, more recently several authors suggest that this participation should be fostered. I argue in this paper that both sides in the debate neglect important aspects of referendums. Discussing whether direct participation by the citizens is a good or bad thing addresses only half (...) the story. More precisely, we have to get a better idea about how referendums interact with the traditional institutions of representative democracy. (shrink)

Institutional economics and discourse theory stand unconnected next to each other, in spite of the fact that they both ask for the legitimacy of institutions (normative) and the functioning and effectiveness of institutions (positive). Both use as theoretical constructions rational individuals and the concept of consensus for legitimacy. Whereas discourse theory emphasizes the conditions of a legitimate consensus and could thus enable institutional economics to escape the infinite regress of judging a consensus legitimate, institutional economics has a tested social science (...) paradigm (rational choice) of explaining and predicting the functioning of institutions. The article outlines a theoretical synthesis of the two theories by finding points in common and possibilities of fruitful combinations concerning the problem of legitimacy, institutional design and effectiveness of legal norms. Key Words: consensus • discourse theory • effectiveness of legal rules • institutional design • legitimacy • new institutional economics. (shrink)