New answers tagged social-welfare
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Example. Each month, God gives Adam $60$ apples and Eve $40$ (for a total of $100$ apples). Let's write this allocation as $X=(60,40)$.
The Devil now comes along and offers to increase their total monthly allotment of apples to $101$, but on the condition that the allocation must be $Y=(59,42)$.
Observe:
$X$ is Pareto efficient but not Kaldor-Hicks ...
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