"A Positive Theory of Bureaucratic Discretion as Agency Choice" George A. Krause George.Krause@sc.edu Abstract: Existing research on the positive theory of bureaucratic discretion views this phenomenon as a "supply-side" concept that elected officials determine without considering bureaucratic preferences altogether, or by merely treating it as being exogenous to the optimization problem confronting politicians. It has been well established by bureaucracy scholars that agencies have preferences concerning bureaucratic discretion and are proactive in trying to get these preferences met (e.g., Rourke 1984; Wilson 1989). In this essay, I set forth a "demand-side" theory of bureaucratic discretion where an administrative agency's preferences for this commodity under conditions of uncertainty is determined through the relationship between its utility and (a) bureaucratic discretion, and (b) policy (implementation) outcome uncertainty, separately. Moreover, I argue that the discretionary context confronting the agency will matter, and thus incorporate this into the theoretical model. Hypotheses concerning the discretionary context by which administrative agencies will view bureaucratic discretion are generated from this model. Finally, I propose a statistical test that could be employed to empirically test the theoretical predictions of the "demand-side" model of bureaucratic discretion set forth in this paper.