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.

Scitovsky Compensation Principle

Scitovsky Compensation Principle