Short Answer

Modifying Economic Outcomes for Superiority

Consider two potential outcomes for a project involving two stakeholders, Stakeholder A and Stakeholder B. The payoffs are represented as (Stakeholder A's payoff, Stakeholder B's payoff).

  • Outcome 1: (10, 5)
  • Outcome 2: (8, 9)

As they stand, neither outcome is superior to the other based on the principle that an allocation is superior only if it makes at least one party better off without making any party worse off.

Propose a single, minimal change to the payoffs of Outcome 2 that would make it demonstrably superior to Outcome 1 according to this principle. Explain your reasoning.

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Updated 2025-08-01

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