Resource Allocation

A resource is any supply or technology input to a productive process to create value or wealth. Resource allocation involves the physical movement or transfer of supply from a point of origin to a destination. Resource allocations may be directed by private owners or by government. Private owners may be motivated by self-interest or by social responsibility. Typically, government requirements regulate these transfers to put social or political goals into practice. For example, government subsidies may direct resource allocations, regulations may govern them, and taxes may raise funds for them. The integrity of procedural justice in legal institutions and judicial systems is critical for the protection of property rights, an important component of the allocation process.

Competition among sellers in a free market tends over time ...