A note on the possibility of decentralization in a model of allocation of resources

Authors
Maiti, Pradip Sengupta, Ramprasad
Citation
Maiti, Pradip et Sengupta, Ramprasad, A note on the possibility of decentralization in a model of allocation of resources, Management science , 19(12, Applic), 1973, pp. 1459-1461
Journal title
Management science → ACNP
ISSN journal
00251909
Volume
19
Issue
12, Applic
Year of publication
1973
Pages
1459 - 1461
Database
ACNP
SICI code
Abstract
The decomposition algorithm for the solution of large-scale linear programmes has been interpreted by Baumol and Fabian (Management Science, September, 1964) as a procedure for decentralized decision by the multi-division company or the multi-sector economy. While commenting on the possibility of decentralization in this context, they maintain that an economy's optimum point will not in general yield a sectoral optimum. The present note demonstrates that this contention is not valid.