1016 PONTIFICIAE ACADEMIAE SCIENTIARVM SCRIPTA VARIA - 28 
different qualities of a service, and thus to estimate an extra- 
returns curve (°). 
Where an organization is conceived to be society itself, can 
change in average productivity of its labor force be translated 
into changes in Gross System Product (inclusive of non-econo- 
mic type commodities appropriately priced)? Can an extra- 
returns curve be constructed to relate changes in Gross System 
Product to changes in participation potential? 
3. 
INFORMATION, COMMUNICATION AND OTHER DECISION-MAKING 
COSTS 
In the consideration of the spatial decentralization of deci- 
sion-making authority for an organization, it is important to 
identify the differences among patterns in cost of information 
collection, processing, and transmission, and of executive time 
and other items. Unfortunately, this is another area in which 
the accumulation of empirical materials and empirically-based 
hypotheses is inadequate (1°). Nonetheless, it is essential to 
treat explicity these costs. In suggesting hypotheses, we shall 
draw heavily upon some of the pioneering thinking of 
J. MarscHAK and T. MarscHak (1). 
(°) Alternatively, extra-returns may be conceived as psychic income, or 
good will, or political income based upon power, prestige. respect. affection 
and other Lasswell-type commodities. 
(1%) There are, however, interesting and somewhat, related materials on 
administrative costs, such as in James McNuULty, Administrative Costs and 
Scale of Operations in the U.S. Electric Power Industry - A Statistical 
Study, « The Journal of Industrial Economics, Vol. 5, November 1956, 
PP. 30-43; P.G. HERBsT, Measurement of Behavior Structures by Means 
of Input-Output Data, « Human Relations », Vol. 10, No. 4, 1957, pp. 335- 
346; and THEODORE R. ANDERSON and SEYymMoUrR WARKoOw, Organizational Size 
and Functional Complexity: A Study of Administration in Hospitals, 
« American Sociological Review », Vol. 26, February 1961, pp. 23-28. Also 
see WiLLiam R. HucHEs, Short-Run Efficiency and the Organization of 
the Electric Power Industry, « Quarterly Journal of Economics », Vol. 76. 
November 1962, pp. 592-612. 
(') See the works of Jaco MarscHAK already cited and THoMAs MAr- 
SCHAK, Centralization and Decentralization in Economic Oreanizations. 
« Econometrica ». Vol. 27. Tulv 1050, DD. 200-430. 
121 Isard - pag. 14