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The Revealed Preferences of a Government Bureaucracy: Theory

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  • Daniel McFadden

Abstract

A method is developed for inferring, from the consequences or outcomes of organizational decisions, an implicit choice criterion such that the organization behaves as if it were following this decision rule. The method is quantified for the case of a public bureaucracy facing discrete alternatives, and is applied in a study of the decision rules underlying freeway route selection by a state division of highways. Tests are carried out on the form of the benefit-cost calculus utilized by the bureaucracy, on the implicit evaluation of indirect benefits and costs, and on the influence of political factors on routing decisions.

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Bibliographic Info

Article provided by The RAND Corporation in its journal Bell Journal of Economics.

Volume (Year): 6 (1975)
Issue (Month): 2 (Autumn)
Pages: 401-416

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Handle: RePEc:rje:bellje:v:6:y:1975:i:autumn:p:401-416

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Cited by:
  1. Richard Barke & William Riker, 1982. "A political theory of regulation with some observations on railway abandonments," Public Choice, Springer, vol. 39(1), pages 73-106, January.
  2. Matthew T. Cole & Am¨¦lie Guillin, 2013. "The Determinants of Trade Agreements in Services vs. Goods," Working Papers 1307, Florida International University, Department of Economics.
  3. Anthony Boardman & Aidan Vining & W. G. Waters, 1993. "Costs and benefits through bureaucratic lenses: Example of a highway project," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 12(3), pages 532-555.
  4. Strom Steinar & Locatelli Marilena & Dagsvik John K., 2013. "Compensated Labor Supply Probabilities and Slutsky Elasticities in Discrete Labor Supply Models," Department of Economics and Statistics Cognetti de Martiis. Working Papers 201308, University of Turin.
  5. Miravete, Eugenio J & Seim, Katja & Thurk, Jeff, 2013. "Complexity, Efficiency, and Fairness of Multi-Product Monopoly Pricing," CEPR Discussion Papers 9641, C.E.P.R. Discussion Papers.
  6. Bergman, Mats A. & Jakobsson, Maria & Razo, Carlos, 2003. "An Econometric Analysis of the European Commission's Merger Decisions," Working Paper Series 2003:6, Uppsala University, Department of Economics.
  7. Gagea, Mariana, 2014. "Modelling the Confidence in Industry in Romania and other European Member Countries Using the Ordered Logit Model," Journal for Economic Forecasting, Institute for Economic Forecasting, vol. 0(1), pages 15-34, March.
  8. Scott L. BAIER & Jeffrey H. BERGSTRAND & Peter EGGER, 2009. "The Growth Of Regional Economic Integration Agreements And The Middle East," Region et Developpement, Region et Developpement, LEAD, Universite du Sud - Toulon Var, vol. 29, pages 11-30.
  9. Dominique Prunetti & Alexandre Muzy & Eric Innocenti & Xavier Pieri, 2014. "Utility-based Multi-agent System with Spatial Interactions: The Case of Virtual Estate Development," Computational Economics, Society for Computational Economics, vol. 43(3), pages 271-299, March.
  10. Jeffrey H. Bergstrand & Peter Egger, 2011. "What Determines BITs?," CESifo Working Paper Series 3514, CESifo Group Munich.
  11. Baier, Scott L; Bergstrand, Jeffery H; Mariutto, Roland., 2010. "The Growth of Bilateralism," CAGE Online Working Paper Series 12, Competitive Advantage in the Global Economy (CAGE).
  12. Batley, Richard & Ibáñez, J. Nicolás, 2012. "Randomness in preference orderings, outcomes and attribute tastes: An application to journey time risk," Journal of choice modelling, Elsevier, vol. 5(3), pages 157-175.

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