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giovedì 25 luglio 2013

Decision Making

What praxeology calls choosing is nowadays, as far as it concerns
the choice of means, called decision-making.
The neologism is designed to divert attention from the fact that what matters is not simply to make a choice, but to make the best possible choice.
This means: to proceed in such a way that no less urgently
desired end should be satisfied if its satisfaction prevents the
attainment of a more urgently desired end.
 In the production processes directed in the market economy by profit-seeking business this is accomplished as far as possible with the intellectual aid of economic calculation.
 In a self-sufficient, closed, socialist system, which cannot resort to any economic calculation, the making of decisions concerning means is mere gambling
Ludvig Von Mises, "The Ultimate Fondation of Economic Science"

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