allocation

al-oh-KAY-shun /ˌæləˈkeɪʃən/
nounB2GMATGREIELTS
businesspoliticalformal

The action or process of distributing resources or shares for a particular purpose.

Usually implies a formal, often legal or bureaucratic, decision-making process.

The story behind the word. From the Latin 'locare' (to place), the same root as 'location.' To allocate is to 'place' a resource toward a specific person or goal.

Word relationships

  • allotment: Allotment often refers to the specific portion given, while allocation refers to the process of giving it.
  • distribution: Distribution is broader and can be natural; allocation is always intentional.

Commonly confused with

  • location: Location is where something is; allocation is where something is assigned to go.

Word family

  • allocate (verb): To distribute according to a plan.
  • allocator (noun): One who allocates.

Collocations

  • resource allocation
  • budget allocation
  • water allocation

Example sentences

  • "The allocation of water from the Colorado River is governed by a century-old compact." Water rights debate
  • "Efficient resource allocation is the key to maintaining a sustainable budget." Corporate finance

Memory hook

Think of 'Allow-cation'—allowing a certain amount to go to a certain location. Assigning a spot.

When not to use

Don't use for random sharing; use when there is a plan or system involved.

Fun facts

  • In economics, 'Pareto efficiency' is a state where no further allocation can make someone better off without making someone else worse off.
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