This article argues that numbers of uncompensated losers, here equated with numbers below the poverty line, should accompany distribution and efficiency as a third element in the SWF. No constant weights, efficiency and distribution SWF can satisfy two simple axioms

Part I of this Article explains the dual analysis of ethics (ethical base of markets as a process and an end result) as it relates to profits and market efficiency. In particular, the author questions whether individuals are able to judge their own welfare and, if so, do individuals accept that...