Allocation of Resources

An Internet search for the term resource allocation first yields its application to economics or business—secondarily, to psychology. The term’s general meaning is consistent with its use in both psychology and economics, but both the resources (commodities) and processes involved in allocation (strategic distribution processes) can be quite different in their applications. This entry discusses resource allocation as it applies to psychology.

The nexus of these disciplines is perhaps best illustrated by the work of psychologist Daniel Kahneman. Among many other important works, Kahneman authored the very influential book Attention and Effort as well as numerous works in experimental economics in which he and several collaborators applied principles of cognitive psychology to economics. His success with this application was rewarded with a Nobel Prize in Economics ...