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" "Certainly, there is no general principle that prevents the creation of an economic theory based on other hypotheses than that of rationality.
Kenneth Joseph Arrow (August 23, 1921 – February 21, 2017) was an American economist, who was Professor Emeritus of Economics in Stanford, and joint winner of the Nobel Memorial Prize in Economics with John Hicks in 1972.
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We have the possibility of diverting other resources to the medical field, but that means some subtraction somewhere else. We are sufficiently close to full employment that there is no great amount of unused resources to draw upon for this purpose. We do, of course, draw to some extent upon doctors trained in other countries, but quantitatively speaking, this is not very much of a help. The basic scarcity problem cannot be avoided.
The need for coordination has two basic causes: the various members (e.g., production units) are competing for a common pool of resources, financial and material; and different decisions complement or substitute for each other. For both reasons, the effectiveness of decisions made by one participant is influenced by the decisions of another. With limitations on the flow of information, the decisions themselves cannot be coordinated. That would require transferring all the information available, precisely what is to be avoided. It has been emphasized earlier that when information will be available, the individual should choose a decision function, a policy or strategy that determines what his actual decision should be for each possible signal he receives. Hence, ideally, in an organization there should be prior agreement on decision functions or strategies for all participants.