Kenneth Arrow: Quotes about problems

Kenneth Arrow was American economist. Explore interesting quotes on problem.
Kenneth Arrow: 74   quotes 1   like

“The formal structure of a decision problem in any area can be put into four parts: ( 1 ) the choice of an objective function denning the relative desirability of different outcomes; (2) specification of the policy alternatives which are available to the agent, or decisionmaker, (3) specification of the model, that is, empirical relations that link the objective function, or the variables that enter into it, with the policy alternatives and possibly other variables; and (4) computational methods for choosing among the policy alternatives that one which performs best as measured by the objective function.”

Kenneth Arrow

Source: 1970s-1980s, The Economics of Information (1984), p. 55

Problem , Decision , Parting

“Decision theory, as it has grown up in recent years, is a formalization of the problems involved in making optimal choices. In a certain sense — a very abstract sense, to be sure — it incorporates among others operations research, theoretical economics, and wide areas of statistics, among others.”

Kenneth Arrow

Source: 1970s-1980s, The Economics of Information (1984), p. 55

Optimism , Problem , Decision , Sense

“From the point of view of seeking a consensus of the moral imperative of individuals, such consensus being assumed to exist, the problem of choosing an electoral or other choice mechanism, or, more broadly, of choosing a social structure, assumes an entirely different form from that discussed in the greater part of this study.”

Kenneth Arrow

Source: 1950s-1960s, Social Choice and Individual Values (1951), p. 85

Problem , Study , Parting

“Perhaps as important is the relation between the existence of solutions to a competitive equilibrium and the problems of normative or welfare economics.”

Kenneth Arrow

Source: 1950s-1960s, "Existence of an equilibrium for a competitive economy." 1954, p. 265

Problem

“Multiple discoveries are in fact very common in science and for much the same reason. Developments in related fields with different motivation help one to understand a difficult problem better. Since these developments are public knowledge, many scholars can take advantage of them. It is pleasant to the ego to be first or among the first with a new discovery. However, in this case at least, the evidence is clear that the development of general equilibrium theory would have gone on quite as it did without me.”

Kenneth Arrow

Arrow (1984) "November 1984 lecture at Trinity University". Lecture presented November 5, 1984.
1970s-1980s

Motivation , Understanding , Knowledge , Problem

“We don't have much time left. We are moving towards temperature increases of around two degrees Celsius, which is going to have consequences in the tropics, and we will loose things like glaciers. That's not a theory; it's happening right now. It's not a prediction; it's happening right now. But you just sightsee near those glaciers. But the glaciers are a big source of water. And on the questions of water, in California we store our water in a snowpack. When that's gone, the rain will be the same but it won't accumulate. With warming temperatures the snowpack will now work. It might be possible to substitute with dams, but that's complicated. This is conjoined with a big energy problem and I think that we really have to encourage development in this area. Just waiting for technological improvement won't work. We need to encourage it.”

Kenneth Arrow

quoted in Conor Clarke, An Interview with Kenneth Arrow, Part Three https://www.theatlantic.com/politics/archive/2009/07/an-interview-with-kenneth-arrow-part-three/22330/ (2009)
New millennium

Time , Waiting , Question , Problem

“There are information asymmetries in this story. Health insurance is limping along. It's limited in scope, and then you other consequences. Insurance companies have high premiums to protect themselves. The ones who come to the insurance company are sicker and the people have to pay more. You have adverse selection. You have moral hazard. And the doctor does what's on the safe side -- defensive medicine -- without regard to cost. These are fundamental conditions that make health insurance difficult. You have some things that help. Some doctors understand that they shouldn't abuse the system. But you still see problems in the way doctors behave towards patients. They goof off. Sometimes it's too much work. Some things are difficult and risky to diagnose.”

Kenneth Arrow

quoted in Conor Clarke, An Interview with Kenneth Arrow, Part Two https://www.theatlantic.com/politics/archive/2009/07/an-interview-with-kenneth-arrow-part-two/22279/ (2009)
New millennium

Understanding , Help , Health , People

“I don't know which way human psychology will go wrong. We have a world in which there is uncertainty. There are new technologies. And one of the problems is that we do things today with a thought to the future. Any purchase is one for the future. If you buy a refrigerator you are making a commitment to the future, so that you have food to eat for the next ten years. That's a simple theory, one of many simple theories -- theories that people agree on and that don't, in a fundamental way, change. But every once in a while there is unemployment, and wages will drop, and there will be several different interpretations.”

Kenneth Arrow

quoted in Conor Clarke, An Interview with Kenneth Arrow, Part One https://www.theatlantic.com/politics/archive/2009/07/an-interview-with-kenneth-arrow-part-one/22213/ (2009)
New millennium

Food , Future , People , Problem