1022 PONTIFICIAE ACADEMIAE SCIENTIARVM SCRIPTA VARIA -
2
be the greater, the smaller the degree of spatial centralization?
Thus, would total time spent in reaching decisions on a con-
crete issue be the greater, the smaller the degree of spatial
centralization? Could the relevant cost function of executive
time be depicted by a curve such as curve S of Figure 8 after
adjustment for different levels of efficiency and prices of execu-
tives at different order nodes? On the other hand, if a supply
of slack executive (decision-making) labor is assumed to exist
at each node and if this labor is assigned a zero cost, then might
curve T of Figure 8 be considered relevant?
It is clear from the preceding discussion that a significant
amount of empirical research must be conducted to permit the
development of firm hypotheses on information and commu-
nication costs within an organization. Pending such research
we may, for pedagogical purposes alone, set down a total cost
curve with reference to decisions on a representative concrete
issue (or set of concrete issues). If we postulate that no slack
resources exist and that all labor and facilities are properly
priced, we may let the curve in Figure g depict the relevant
total cost function. Other curves of different slope and also
of positive slope may of course be considered equally valid.
4. OVERVIEW ADVANTAGE (AND DISADVANTAGE)
We now turn to another set of significant factors which
vary with the degree of spatial decentralization. These factors
relate to the ability to make wise or good decisions. It has
generally been claimed that the decision-maker (the individual,
planning bureau, or government agency) at the Ist-order node
is able to make better decisions than others, ceteris paribus.
However, does the empirical evidence support this claim?
Within the tree-like organization of the preceding paragraphs,
does the decision maker at the 1st-order node have available
a much greater amount of relevant information than decision
12] Isard - pag. 20
