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Destruction or transfer

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  • Ding, Zhangchi
  • Kang, Minwook
  • Yang, Kyoowon

Abstract

This paper investigates the relationship between the “transfer paradox” and “destruction paradox”. We address two key questions: (1) When faced with either paradox, is destruction or transfer more effective in improving the utility of the donor? (2) Does the existence of one paradox imply the existence or absence of the other? For a two-good economy, the destruction paradox always exists and is preferable when the transfer paradox decreases the price of the non-transferred good, but never occurs when the transfer paradox increases it. When the destruction paradox exists, destruction is always more effective than transfer for improving utility.

Suggested Citation

  • Ding, Zhangchi & Kang, Minwook & Yang, Kyoowon, 2026. "Destruction or transfer," Economics Letters, Elsevier, vol. 260(C).
    • Handle: RePEc:eee:ecolet:v:260:y:2026:i:c:s0165176525005166
    DOI: 10.1016/j.econlet.2025.112679
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    JEL classification:

    • D02 - Microeconomics - - General - - - Institutions: Design, Formation, Operations, and Impact
    • D50 - Microeconomics - - General Equilibrium and Disequilibrium - - - General
    • F20 - International Economics - - International Factor Movements and International Business - - - General

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