A Mathematical Note on Sub-Optimization

Of the several points discussed in the previous paper [Hitch, C. J. 1953. Jour. Op. Res. Soc. America1 87.], perhaps only one requires any mathematical restatement or explication. This one is the so-called “Golden Rule” for the allocation of scarce resources. Here we present, for a simple case, the proof of the theorem on which it is based [For a discussion of a more general case readers are referred to K. J. Arrow's paper, “An Extension of the Basic Theorem of Classical Welfare Economics,” Proceedings of the Second Berkeley Symposium on Mathematical Statistics and Probability, University of California Press, Berkeley, 1951, pp. 507–532.].

Operations Research, ISSN 0030-364X, was published as Journal of the Operations Research Society of America from 1952 to 1955 under ISSN 0096-3984.