RES (Review of Economic Studies) , January, 1971, concerning whether or not Gorman's Lemma 1 (RES, 1968) can be strengthened by re-laxing Gorman's assumption of arc-connectivity for the space of prospects to connectivity alone. A lemma is proved showing the mentioned relaxation feasible and furnishing proof for Gorman's Lemma 1. This supplies a missing foundation stone of Gorman's "Structure of Utility Functions " and generalizes the results therein.

This book is a report on a research project in which computer simulation techniques were used to test the rationality of alternative methods of priee calculation in industrial firms.Most of the work was done at the Norwegian School of Economies, with the aid of the Computation Centre of the University of Bergen.Drawing as it must from the various fields of economies, accounting, mathematics, statisties, and computer science, the book is partlya product of a rich interdisciplinary academic milieu, in which I am grateful for having had the opportunity to work.Its defects, however, may be attributed to me.The project was financed by grants from AfS Norsk Varekrigsforsikrings Fond and