Category: Economics

“Consider now a participant in a social exchange economy. His problem has, of course, many elements in common with a [Robinson Crusoe] maximum problem. But it also contains some, very essential, elements of an entirely…

“As the doctrine developed, the rule of equal marginal sacrifice soon won the day and with Pigou (1928, p. 60) became the correct solution. Viewed from the perspective of fairness, this was hardly persuasive. Why…