The third edition of this highly regarded book provides a concise and accessible introduction to the principles and elements of policy design in contemporary governance. It examines in detail the range of substantive and procedural policy instruments that together comprise the toolbox from which governments choose tools to resolve policy problems and the principles and practices that lead to their use. Guiding readers through the study of the many different kinds of instruments used by governments in carrying out their tasks, adapting to, and altering, their environments, this book: Considers the principles and practices behind the selection and use of specific types of Instruments in contemporary government and arrangements of policy tools esp. procedural tools and policy portfolios Evaluates in detail the merits, demerits, and rationales for the use of specific organization, regulatory, financial and information-based tools and the trends visible in their use Examines key issues such as policy success and failure and the role of design in it; policy volatility and risk management through policy design; how behavioural research can contribute to better policy designs; and the 'micro' calibrations of policies and their importance in designs and outcomes Addresses the issues not only surrounding individual tools but also concerning the evolution and development of instrument mixes, their relationship to policy styles and the challenges involved in their (re)design as well as the distinction between design and "non-design' Providing a comprehensive overview of this essential component of modern governance and featuring helpful definitions of key concepts and further reading, this book is essential reading for all students of public policy, administration, and management.