IDEAS home Printed from https://ideas.repec.org/a/ibf/gjbres/v2y2008i2p77-85.html
   My bibliography  Save this article

The Applicability Of Benford’S Law To The Buying Behavior Of Foreign Military Sales Customers

Author

Listed:
  • Charley Tichenor
  • Bobby Davis

Abstract

The forces of natural law selection prompt animal species to make preference decisions to maximize their survival utility. Those species making decisions in this way survive, and those which do not tend towards extinction. This process appears to follow a decreasing marginal utility trend with a logarithmic probability distribution, which is identical to Benford’s Law. This suggests that Benford’s Law is a descriptive statistic of this natural selection process. Additionally, the customers of the Defense Security Cooperation Agency’s foreign military sales program presumably also attempt to optimize their survival utility, and exhibit purchasing patterns correlating strongly with Benford’s Law. The purpose of this paper is to examine how a mathematical phenomenon, Benford’s Law, may prove to be a useful means of understanding the buying behavior of DSCA’s foreign customers. This paper also suggests an informal proof of Benford’s Law.

Suggested Citation

  • Charley Tichenor & Bobby Davis, 2008. "The Applicability Of Benford’S Law To The Buying Behavior Of Foreign Military Sales Customers," Global Journal of Business Research, The Institute for Business and Finance Research, vol. 2(2), pages 77-85.
  • Handle: RePEc:ibf:gjbres:v:2:y:2008:i:2:p:77-85
    as

    Download full text from publisher

    File URL: http://www.theibfr2.com/RePEc/ibf/gjbres/GJBR-V2N2-2008/GJBR-V2N2-2008-6.pdf
    Download Restriction: no

    More about this item

    JEL classification:

    • C44 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Operations Research; Statistical Decision Theory
    • M31 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Marketing and Advertising - - - Marketing

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ibf:gjbres:v:2:y:2008:i:2:p:77-85. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Mercedes Jalbert). General contact details of provider: .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.