A model of administrative choice in the systems analysis environment

the long version

In this paper a mathematical model of governmental decisionmaker's problem of choice from a set of alternative cost-benefit streams is presented. The choice objects, costs, and benefits are considered to be defined physically/socially in time, in space, and by a state-of-nature. The decisionmaker's preferences with respect to costs and benefits are represented by a utility index of the standard type except that costs are assumed to be a disutility-causing entity. The set of alternatives from which choice is described is represented by a cost-benefit surface. The decision problem is formulated as a maximization problem. Decision rules are derived. Comparative statics results are given. (Author)