Kenneth Arrow Quote

The formal structure of a decision problem in any area can be put into four parts: (1) the choice of an objective function denning the relative desirability of different outcomes; (2) specification of the policy alternatives which are available to the agent, or decisionmaker, (3) specification of the model, that is, empirical relations that link the objective function, or the variables that enter into it, with the policy alternatives and possibly other variables; and (4) computational methods for choosing among the policy alternatives that one which performs best as measured by the objective function.


p. 55 - The Economics of Information (1984)

Picture Quote 1

The formal structure of a decision problem in any area can be put into four parts: (1) the choice of an objective function denning the relative...

Picture Quote 2

The formal structure of a decision problem in any area can be put into four parts: (1) the choice of an objective function denning the relative...

Picture Quote 3

The formal structure of a decision problem in any area can be put into four parts: (1) the choice of an objective function denning the relative...

Picture Quote 4

The formal structure of a decision problem in any area can be put into four parts: (1) the choice of an objective function denning the relative...