1. QUANTIZED PREFERENCES AND PLANNING BY PRIORITIES.
- Author
-
Vietorisz, Thomas
- Subjects
CENTRAL economic planning ,PLANNING ,ECONOMIC conditions in developing countries ,INDUSTRIAL priorities (Government) ,DEVELOPING countries ,RESOURCE allocation ,MATHEMATICAL programming ,BUDGET ,DECISION making ,CONSUMPTION (Economics) ,CONSUMER behavior ,THEORY - Abstract
The article explores the logic of project planning by priorities and relates these to planners' preferences. Priorities, in the simplest case, are derived independently of resource-allocation considerations and override payoffs defined in terms of resources. The article indicates only summarily potentialities of the proposed approach. The principal claim made on its behalf is that priority rankings are empirically ascertainable and that the resulting quantized preference maps can therefore be regarded as practically usable planning tools. They should be particularly useful in planning-programming-budgeting tasks. The approach, moreover, can be extended to other decision problems insofar as these are either naturally quantized or amenable to an approximation in these terms. Such an extension should open the way to empirical work in consumer demand theory, especially in the field of expenditures on durables and major services and in the behavioral theory of the firm, especially in regard to expansion, diversification and merger decisions.
- Published
- 1970