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Vilfredo Pareto's Principle of Compensation

In: International Trade and Economic Dynamics

Author

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  • Murray C. Kemp

    (University of New South Wales)

Abstract

Pareto proposed his well-known Principle of Compensation in 1894. However, a debate is still active concerning Pareto's own interpretation of the Principle. Did he mean that compensation should be hypothetical (feasible but not necessarily carried out) or should be carried out? It is here argued, against views to the contrary, that Pareto had in mind, the second alternative.

Suggested Citation

  • Murray C. Kemp, 2009. "Vilfredo Pareto's Principle of Compensation," Springer Books, in: Takashi Kamihigashi & Laixun Zhao (ed.), International Trade and Economic Dynamics, pages 525-532, Springer.
    • Handle: RePEc:spr:sprchp:978-3-540-78676-4_34
    DOI: 10.1007/978-3-540-78676-4_34
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