Hicks optimality
Encyclopedia
In game theory
, a Hicks-optimal outcome, named after John Hicks
, is an outcome in which the total payoff for all of the players of a game is the most it could possibly be. A Hicks-optimal outcome is always Pareto efficient
.
Game theory
Game theory is a mathematical method for analyzing calculated circumstances, such as in games, where a person’s success is based upon the choices of others...
, a Hicks-optimal outcome, named after John Hicks
John Hicks
Sir John Richard Hicks was a British economist and one of the most important and influential economists of the twentieth century. The most familiar of his many contributions in the field of economics were his statement of consumer demand theory in microeconomics, and the IS/LM model , which...
, is an outcome in which the total payoff for all of the players of a game is the most it could possibly be. A Hicks-optimal outcome is always Pareto efficient
Pareto efficiency
Pareto efficiency, or Pareto optimality, is a concept in economics with applications in engineering and social sciences. The term is named after Vilfredo Pareto, an Italian economist who used the concept in his studies of economic efficiency and income distribution.Given an initial allocation of...
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