Source and decoding - Shabbat 13b
שֶׁעָלוּ לְבַקְּרוֹ, נִמְנוּ, וְרַבּוּ בֵּית שַׁמַּאי עַל בֵּית הִלֵּל. וּשְׁמוֹנָה עָשָׂר דְּבָרִים גָּזְרוּ בּוֹ בַּיּוֹם.
In the upper room of Chananiah ben Chizkiyah ben Garon the Sages voted, and that day they decreed eighteen things.
In the upper room of Chananiah ben Chizkiyah ben Garon the Sages voted, and that day they decreed eighteen things. The Mishnah describes a counted decision at a particular gathering where Beit Shammai held the majority. This alone does not explain the rules for deciding every dispute between the schools.