As a basis for welfare comparisons, the idea that if a policy change (such as a tariff reduction) could be Pareto improving if it were accompanied by appropriate lump-sum transfers from winners to losers, then it is viewed as beneficial even when those transfers do not occur.
Related information about compensation principle:
- Compensation principle - Wikipedia, the free encyclopedia
In welfare economics, the compensation principle refers to a decision rule used to select between pairs of alternative feasible social states. One of these states is ...
- What is compensation principle? definition and meaning
Definition of compensation principle: As a basis for welfare comparisons, the idea that if a policy change (such as a tariff reduction) could be Pareto improving if it ...
- WISDOM SUPREME | Compensation Principle
Reference information on Compensation Principle.
- Development economics and the compensation principle
Development economics and the compensation principle. Ravi Kanbur. Abstract. How does development economics address the issue of gains and losses from ...
- Compensation principle: Information from Answers.com
Compensation Principle In economics, a method used to determine whether one set of economic or social conditions constitutes an improvement over another.
- The Compensation Principle - the Cowles Foundation
tion, let us consider another proposed form, the compensation principle. This term has ... the assumption of the form of the compensation principle with which ...
- 3 - The compensation principle and the social welfare function ...
This is the first book on welfare economics to be primarily intended for undergraduates. It explores such concepts as Pareto optimality in a market economy, the ...
- The Compensation Principle in Private Law - Digital Commons at ...
While the compensation principle has occupied a central position in modern private ... compensation principle and the influence of justice accounts in remedies ...