According to the GreenwaldÂ–Stiglitz theorem, markets will not satisfy this condition so long as there is imperfect information, or the market is incomplete.
According to the GreenwaldÂ–Stiglitz theorem, markets will not satisfy this condition so long as there is imperfect information, or the market is incomplete. It's not equilibrium, but the set of points that satisfy this condition in the interior of the Edgeworth box is known as the contract curve. Amartya Sen demonstrated that this condition was incompatible with "minimal liberalism" in his "liberal paradox." By considering the possibility of (*) compensations, Kaldor and Hicks introduced a more general form of this condition. This condition is satisfied in a competitive equilibrium according to the first fundamental theorem of welfare economics. For 10 points, name this condition in which there exists no alternative allocation of resources that would make someone better off without making someone else worse off.
According to the GreenwaldÂ–Stiglitz theorem, markets will not satisfy this condition so long as there is imperfect information, or the market is incomplete.
Pareto optimality [or Pareto efficiency; accept other word forms]