Chandler Davis

“ The Statistomat has often recommended purchase of G.C. stock. Let me explain to you an aspect of modern firm management which may be so specialized as to have escaped your attention.
"Each firm draws up what is called a preference function. It is somewhat analogous to the investor's time-dependent utility function. It gives exact expression to the objectives of the firm. For any conceivable economic position the firm might be in, it determines, let us say, the weight the board places on a dividend this year as against a larger dividend a year from now, or ten. ”

“ All these preference functions are known to your Statistomat; in effect, it is as if they were all in Statistomat's memory, continuously updated, automatically. Naturally, for a particular kind of investor only certain kinds of stock are suitable.
"But Statistomat does more—and this is the point I think you'll find intensely interesting. After all, more than the firm's policy is important. Two firms may have identical financial policies but very different dividend rates, either due to different degrees of success or to different kinds of partial success. ”

“ The salesman knew Jed Borch was unmarried. "He has planned to his satisfaction a way of life appropriate to his standing." On the next chart the Jones family was backed up by a half-acre bungalow, a lake, and wooded hills.
"His desire is for security, to ensure this pattern of living to himself and his wife, and to his son. His personalized Statistomat plans his finances accordingly." On succeeding charts, Jones changed only in subtle lengthening of the firm lines in his face, his wife didn't change at all, but his son sprouted to a six-footer and the bungalow grew some too. ”

“ It always gives me a specially grateful feeling when I see society saved from a deviant like that.... It's not that there was any danger they would have challenged Incomac's market leadership, but even if they had continued in existence as small as they are now they would have taken away some customers. Our responsibility to our stockholders is not just to make profit. It is to make the maximum possible profit—to optimize! ”

“ The machine can be connected by direct wire to the Exchange's computer."
"Yeah-yeah, but how do I know what stocks I'll be getting? I want General Computers preferred!"
He smiled. "Quite possibly you'll find yourself the owner of a considerable block of G.C. preferred—provided of course your time-dependent utility function dictates a policy which—"
"You mean," I said, with the very suspicious expression my brother always objected to, "you'd let your machine bid for G.C. stock for me?" ”

“ Starting with the same sum of $25,000,000, he may just as legitimately view different goals. Mr. Thompson is unmarried, and has not yet chosen to what station he will aspire." Chapter Two of the charts had just as admirable-looking a man (different color hair) . I was curious how much Statistomat would finagle for him, but not curious enough to sit through another dozen charts. When the salesman said, "Naturally he's willing to risk—" I interrupted:
"I don't want any risk. Can't afford to." I smiled slyly. "Responsibility to society." ”