The impact of information and communication technologies on the costs of democracy

Recent developments in information and communication technologies (ICTs) can change the way strategic organizational decisions are negotiated and voted upon. We propose an analytical framework that investigates the effect of such technologies on the costs of the decision-making process in organizations by incorporating a technology variable in an already well-known model of public decision-making. The framework is applicable to any large group decision setting where collective decisions are made by voting, such as shareholders’ meetings, local and federal government meetings. We apply the framework to derive policies that will help to decrease the costs related to the democratic process. The first policy requires that governments should invest more in technologies that support multi-lateral communication and negotiation among citizens, and the second requires that citizens should use better voting mechanisms than simple majority voting to make decisions.