First put forth as the concept of maximum ophelimity, it must satisfy the Kuhn-Tucker conditions, and some of its restrictions are relaxed in the Kaldor-Hicks model.
First put forth as the concept of maximum ophelimity, it must satisfy the Kuhn-Tucker conditions, and some of its restrictions are relaxed in the Kaldor-Hicks model.Amartya Sen's namesake paradox resulted from a criticism of this concept, which Sen put forth in a paper whose title referred to the impossibility of a liberal who subscribes to this idea. In a result known as the first welfare theorem, Kenneth Arrow and Gerard Debreu showed that if a price system and an allocation is a competitive equilibrium, then the allocation has this property. For ten points, identify this situation, in which resource allocation can not be changed to make one party better off without making another party worse off.
First put forth as the concept of maximum ophelimity, it must satisfy the Kuhn-Tucker conditions, and some of its restrictions are relaxed in the Kaldor-Hicks model.
{Pareto} Efficiency or Optimality