How Does Michelin Assign Stars?

Do you wonder what merits a Michelin Star?  Wikipedia gives this description: The Michelin Guide (French: Guide Michelin, IPA: [gid miʃlɛ̃]) is a series of annual guide books published by Michelin for over a dozen countries. The term normally refers to the Michelin Red Guide, the oldest and best-known European hotel and restaurant guide, which awards the Michelin stars.
But who decides whether a not a restaurant or hotel should have one star or two or maybe none at all?  And what are the criteria? What do they base their decision on?
Recently, a restaurant in Nimes, Le Lisista, declined the award for a Michelin Star in order to win back diners*.  The Chef says the 'star' requires him to hire more staff which raises his costs which must be passed on to his customers.  In order to keep the costs at a minimum he says, "No, thanks."  So although he may not staff to the level Michelin requires, the quality of the cuisine will not be compromised.

So where am I going with all of this talk about Michelin stars?  See the rest of the story at: http://www.afrenchlife.com/.