The foundation of welfare economics is the assumption of Pareto-efficiency and its concept of tradeoffs. Also the production possibility frontier, efficiency frontier, nondominated set, etc., belong to the plethora of tools derived from the Pareto principle. The assumption of tradeoffs does not...

The Bata Company became the largest and thriving global enterprise of the 20s and 30s, during the decades of economic crises. Why could Bata prosper when everybody around was contracting, laying people off and passively waiting for governmental bailouts and handouts? Our answer lies in the...