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Microeconomics II
book

Microeconomics II

by D.N. Dwivedi
August 2011
Intermediate to advanced content levelIntermediate to advanced
368 pages
14h 51m
English
Pearson India
Content preview from Microeconomics II
312 Chapter 15
asking B how much she would pay to prevent the change. Suppose A puts his amount at M
a
and B puts
it at M
b
. If M
a
> M
b
, the policy change makes an improvement in welfare. But, it is dicult to evaluate
social welfare implication of a movement from J to K, on the Kaldor–Hicks criterion. e same argument
can be applied to the change from point K back to J. Note that in the change from J to K, point K can be
regarded a superior point. But in a change from K to J, point J is a superior point and K an inferior point.
us, Kaldor–Hicks criterion is self-contradictory.
THE SCITOVSKY DOUBLE CRITERIA
As mentioned above, Scitovsky poin ...
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Publisher Resources

ISBN: 9788131797655