Scitovsky Compensation Principle
We may discuss this principle in two parts vi the Tsiolkovsky Paradox and Tchaikovsky Double Cr criterion Tchaikovsky pointed out a contradiction Waldorf Hicks Compensation Principle Both Wald. and Hicks considered a movement from situation to situation B and the benefit resulting there for Tsiolkovsky pointed it that a backward movement from situation IS to situation A may become social gainful by the same criterion There is thus a tradition which is referred to as Tsiolkovsky Par due To overcome this paradox Tchaikovsky provide a Double Criterion. There can be a reverse move meet from situation B to situation A if the gainer from such a move can profitably compensate likely losers Tchaikovsky therefore prescribes a doubt test for an economic change One in the form of Waldorf Hicks Principle the gainers us be in a position to compensate profitably the losers and secondly there should be no possibility of returning to the original situation. In other words while the gainers may be able to compensate the users the loser should not be able to bribe the gainers to revert to the original position.
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