LOTKA : EFFICIENCY ' IN ORGANIC EVOLUTION 397 



ECONOMICS. — Efficiency as a factor in organic evolution. 11.^^ 

 Alfred J. Lotk.\. 



ERRORS of valuation 



There remains to be discussed the effect upon r or errors of 

 the sense of values, or errors of valuation. We must here apply 

 a different method from the one employed m the case of errors of 

 observation, operation, and mentation, since errors of valuation 

 influence r not through the productive efficiencies of the indi- 

 vidual in several activities but through the manner in which 

 the individual distributes his efforts among different activities. 



We may proceed as follows: 



If an individual had a perfect sense of values he would arrange 

 his affairs, distribute his labor, so that r, the rate of increase 

 per head of the race, were a maximum. ^^ 



Let Xi, Xo . . . be quantities of commodities pro- 

 duced and consumed per head 

 per unit of tune 



(16) 



L], L2 . . . the labor spent on each commod- 

 ity per head per unit of time 



/i, /2 . . . the fatigue produced per head per 



unit of time by labor Li, Lo per 

 unit of time. 



Then the individual with a perfect sense of values would, for 

 each commodity, make 



l^L.^^^M)dL,^0 (17) 



for any arbitrary small cIL^. 



— is in general a minus quantity). 



^^Part I of this paper appeared in this Journal, Vol. 5, no. 10, May 19, 1915, 

 pp. 360-368. 



"Compare this Journal, 1914, loc. cit. 



