Matrices and society by Ian Bradley, Ronald L. Meek

By Ian Bradley, Ronald L. Meek

Bradley I., Meek R.L. Matrices and society (PUP, 1986)(ISBN 0691024049)(600dpi)(T)(237s)

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Beforehand, the prefecture compiles a concise list of criteria to which the eventual budget should adhere. Since government officials also have a vote in the meetings, they are keen on monitoring adherence to these criteria. Moreover, there is the requirement that expenditures and incomes add up to zero, eventually. Hence, delegates cannot spend at will, but have to take into account financial constraints. Moreover, there is a strong incentive to produce consensus, as any failure to come to a conclusion will make the representatives come off as irresponsible and not worthy of re-election.

Me´nard and Shirley 2005). Although it is not yet possible to make a systematic evaluation of the transaction cost reduction that matching zones bring about, some broad lessons can be drawn from both practical and theoretical insights. Through a proper design and management of matching zones a fall in transaction costs and an improvement in policy outcomes can be obtained. In that case the design and management of the matching zone should adhere to a number of principles, as discussed in Sect. 5 of this chapter.

If an improvement can be made with all parties better off in an absolute sense, then we have a Pareto improvement. Since all economic agents gain, they are assumed to agree with such a solution. There are, however, two caveats. First, issues of fairness can and do play an important role in 2 The Institutional Economics of Stakeholder Consultation 37 Ex post redistribution? Do all parties gain? Yes Yes No “Fair” Pareto improvement Kaldor-Hicks improvement No Pareto improvement Clash of interests Fig.

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