ABSTRACT
This chapter outlines the importance of establishing evaluation criteria in the discussion of the policy analysis process. Criteria are what we use to guide making a decision. The chapter begins by defining the problem and determining the general goals and more specific, measurable objectives of our client. Criteria are used to help us compare the alternatives. Quade defines a criterion as the standard by which we can rank the alternatives in order of preference, using the information uncovered about their impacts. Many prescriptions for change as well as analytical models used by economists rely on the concept of the free, or perfect, market. The concept of cost is central to policy analysis. Economists view costs as resources employed.
