Decision Analysis for Private and Public Sector Decisions

Abstract

In this paper I provide insights into some similarities and some differences between private and public sector decisions. It is often asserted that in the private sector the decision maker deals with a single objective of profit maximization (or shareholder wealth maximization) whereas in the public sector often multiple conflicting objectives must be balanced. I will argue that in both cases the choice of a decision involves balancing multiple concerns and impact on multiple stakeholders.