Tag Archives: pareto-principle

Wikipedia explains that the Kaldor-Hicks improvement criteria is essentially a less stringent version of a Pareto improvement, something where in practice, everyone is made better off. In the Kaldor-Hicks view, merely the ability of the winners to compensate the losers is grounds for claiming something is optimal, regardless of whether such compensation occurs. The basicContinue reading “Suspicious of Kaldor-Hicks as Optimality Conditions”