The completion of this thesis gives me feelings of satisfaction and thankfulness. Satisfaction because its results appear to be worthwile and relevant, and thankfulness towards so many persons who contributed to the progress of the work. The project "Analysis of multilevel decisions" was granted by the common research pool of Tilburg University and Eindhoven University of Techno- logy (Samenwerkingsorgaan Brabantse Universiteiten). During the 4-year lead time, the Department of Econometrics of Tilburg University provided not only a single room but also a pleasant and inspiring environment,...