SEMAINE D'ÉTUDE SUR LE ROLE DE L’ANALYSE ECONOMETRIQUE ETC. 
1025 
test can be undertaken. Nonetheless, for pedagogical purposes 
we shall utilize curve CC of Figure 10 to illustrate overview 
advantages for ‘ifferent degrees of spatial decentralization. 
5. THE NET EFFECT OF PARTICIPATION POTENTIAL, INFORMATION- 
COMMUNICATION-DECISION COSTS AND OVERVIEW ADVANTAGE 
We now examine the interplay of the several factors exam- 
ined, where only one state of the environment can occur. Such 
examination immediately implies the hypothesis that the factors 
examined are in effect the relevant factors. This hypothesis is 
to be seriously questioned. However, if one does accept it, and 
if one accepts the hypotheses implied by the extra-returns curve 
of Figure 3, then in Figure 10 curve AA may be taken to 
represent extra-returns with respect to decisions on a represen- 
tative concrete issue; however, the horizontal axis is taken to 
measure degree of spatial centralization (rather than participa- 
tion potential). Also the pattern of 100 percent spatial central 
ization is taken to be a point of reference for purposes of com 
parison; its extra-returns is set at zero. 
Further, if one were to accept the hypotheses underlying 
the curve of Figure g, then in Figure 10 curve BB depicts 
variation in total information, communication and decision- 
making costs, again where this cost at 100 percent spatial cen- 
tralization is taken to be zero. Curve CC, as already indicated, 
may be taken to portray overview advantage (disadvantage) 
where such advantage 1s set at zero at 100 percent central 
ization. 
Since all advantages, disadvantages, and extra-returns for 
the pattern of 100 percent spatial centralization are set at zero, 
may it be hypothesized that the construction of a fourth curve 
is meaningful? This curve, curve DD of Figure 10, at each 
point of the horizontal axis indicates for the corresponding 
pattern of spatial centralization the net advantage (disadvant- 
f12] Isard - pag. 23