4 votes

Opportunity profits vs. opportunity costs

Opportunity cost is simply the value not obtained of the highest value alternative. It can be positive or negative; meaning it doesn't really make sense to define the opposite as opportunity profit. ...
Clinical_Coder's user avatar
3 votes

Opportunity profits vs. opportunity costs

First off some terminology: opportunity cost are not necessarily avoided profit. Profit is a term that is used for firms, but opportunity cost does not just apply to firms. Moreover as @clinical coder ...
Maarten Punt's user avatar
  • 2,375
3 votes
Accepted

Puzzle: Fairness of consumer price indices

The economic purpose of the CPI is to convert nominal units of consumption (goods and services) into real units of consumption. I understand that the CPI is used for other many purposes, but that's ...
BKay's user avatar
  • 16.3k
2 votes

Fair and efficient allocation of "family goods"

Suppose there are two families: Family U has $n_u$ members, and family V has $n_v$ members. Utility function of member $i$ of family U is: \begin{eqnarray*} u_i(x_u, y_u) = a_ix_u + y_u \end{eqnarray*}...
Amit's user avatar
  • 8,366
2 votes

Fair and efficient allocation of "family goods"

Right now I'm not sure about the equivalence of the relabeling, and therefore the usefulness of this anwer -- see comments below. This is the beginning of an answer and an attempt to demonstrate how ...
Shane's user avatar
  • 825
2 votes

What tools the central banks and governments can use to tame profit-led inflation and is the monetary tightening one of such tools?

Inflation can be either driven by supply or demand shocks (e.g. see Eickmeier & Hofman 2022 What drives inflation?). If you observe excess profits while there is inflation, it is likely that the ...
1muflon1's user avatar
  • 55.5k
2 votes
Accepted

How do economists explain "If You Want to Win, Tell Your Team It’s Losing (a Little)." along with self-efficacy

This is a classic principal-agent problem from game theory. The team wants to get the payoff from winning while minimising effort, while the leader wants to win while minimising the amount that they ...
finite_seed's user avatar
1 vote

Specification of the parameters of this utility function [Behavioral Economics]

As @Henry commented and according to https://meta.stackexchange.com/questions/117251/what-should-be-done-with-questions-that-have-been-self-resolved-as-a-comment-ins I made a community wiki with the ...
1 vote

Is corporate tax an argument in equal income tax (from labour and capital) debate and does the return on capital depend on rate of the corporate tax?

There are too many questions in your post, and I advise to edit out most of them, especially those that are not answerable (like "is the system just" etc). For just the first question the answer is ...
Alecos Papadopoulos's user avatar
1 vote

"Fairness" exists or not in the real world

This is a very broad question and maybe primarily opinion based too. But yes, at least for some definitions it does it exist. One possible definition of fair is envy-free. That is, you wouldn't want ...
BKay's user avatar
  • 16.3k
1 vote

Fair and efficient allocation of "family goods"

Suppose the preferences of all agents in all families are monotone and convex (the standard assumptions of consumer theory). Then, a Pareto-efficient envy-free allocation always exists when there ...
Erel Segal-Halevi's user avatar

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