Niskanen (Vaajoen-Niskanen)

The Niskanen (Vaajoen-Niskanen) model is an economic framework describing how large organizations, like government agencies or corporations, may prioritize expanding their budgets and influence rather than strictly minimizing costs. It suggests that managers or officials might seek to increase their department's size or resources just to gain more power, prestige, or status, even if it isn't the most efficient use of funds. This behavior can lead to inefficiencies and increased public spending, driven by personal or organizational incentives rather than economic optimality.