SEMAINE D’ÉTUDE SUR LE ROLE DE L’ANALYSE ECONOMETRIQUE ETc. 1019 
tion of the degree of spatial centralization-as suggested by 
curve M in Figure 5? (*). However, if one postulates that at 
each local and regional node there exists at least some supply 
of zero-cost decision-making labor, as is frequently the case 
in the literature on socialist economics and centralized plan- 
ning, might the relevant function be represented by cur- 
ve N? (17) Can the spread between curves M and N at any 
point along the horizontal axis be taken to represent the cost 
savings from zero-priced computing and beneficiating resources 
for the corresponding degree of spatial centralization? Further, 
if it is accepted that local decision makers have greater local 
visibility, and therefore need to collect less information, can 
we hypothesize that their need for computation and data pro- 
cessing is accordingly smaller? Would the dotted curve Q be 
relevant rather than curve N? 
Cost component c): In analyzing the costs of transmitting 
information, is it valid to consider only two elements: terminal 
costs (inclusive of coding and decoding costs) and operating or 
« line-haul » costs which are usually a direct function of inter- 
vening distance? Of course, both these costs should be taken 
to cover maintenance expenses and fixed charges on invest- 
ment in communication (transportation) channels (!¥). When 
operating costs rise less than proportionately with distance, 
can the function relating transmission cost per standard unit 
('*) After a point, it may also be hypothesized that scale diseconomies 
arise because of congestion, overload of facilities, etc. 
(') An advantage typically claimed for decentralized planning of the 
economy is a personnel saving because the managers at each local node are 
« a ready-made computational staff and all of them are required in any 
case to be employed for the tasks of managerial supervision. In their 
remaining time they simultaneously perform all the tasks of computing 
each revised set of production decisions except for the computation of 
prices (which is performed by the central agency). In the centralized so- 
lution, on the other hand, the entire burden of these computational tasks 
falls on the central agency, and the agency must hire a staff especially 
for this purpose... » (T. MARSCHAK, op. cit., p. 400). 
(*) Parallels to these cost elements mav be taken to exist when inform 
ation is transported bv individuals 
12 | Isard - pag. 17