SEMAINE D'ÉTUDE SUR LE ROLE DE L’ANALYSE ECONOMETRIQUE ETC.

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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 examined,
 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 representative
 concrete issue; however, the horizontal axis is taken to
measure degree of spatial centralization (rather than participation
 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 decisionmaking
 costs, again where this cost at 100 percent spatial centralization
 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 (disadvantf12]

 Isard - pag. 23