ABSTRACT
Most economic decisions are taken in the private sector, that is to say by private individuals pursuing their own private interests. Economics began as a study of such decisions and it has since been adapted to incorporate the important collective decisions taken by groups either on behalf of themselves, or of other sections of society. Economic theories of public choice have been built on these individualistic foundations, which perhaps explains why they have only recently become sufficiently sophisticated to reflect the greater complexity of the public sector.
