Building more roads will lead to gainers and losers. If the gainers of the new road compensated the losers, but still had a net gain, there would be

Question

Quizplus · Accepted Answer

A potential Pareto improvement occurs when the gains from a change are large enough that those who gain could in theory compensate those who lose, and still be better off. This concept does not necessarily require actual compensation, just the potential for it.

Building More Roads Will Lead to Gainers and Losers