1024 PONTIFICIAE ACADEMIAE SCIENTIARVM SCRIPTA VARIA -

Pe

ing firm acting as a team and confronted with the possibilities
of either a centralized system of decision-making, or a decentralized
 system. (?) His resulting figures would not be inconsistent
 with the hypothesis which states that an overview
advantage does exist, and with the more concrete hypothesis
that states that this advantage can be roughly depicted by
curve CC of Figure 10. [In Figure 10, curve CC indicates a
disadvantage (a negative Figure) for any degree of spatial
centralization less than 100%]. The present author together
with Tung has developed another example involving the investment
 by a large merchandising firm of $1 million at each of
several h*” order nodes (?). The resulting figures are also not
inconsistent with the hypotheses underlving curve CC of Figure
 IO.
Clearly, neither of these two examples can be said to support
 in any way whatsoever any hypothesis on overview
advantage. À considerable amount of spade work has yet to
be done in defining concents and terms before anv empirical

Dollars

+10,000
+ 6,666

SIG.

Al

DEGREE OF
20% SPATIAL
CENTRALIZATION

En

“TARSCHAK, Op. cit.
fsarp and TUNG. ob. cit., Part. II.

121 Isard - pag. 22