Allocative Efficiency
This describes the important economic idea of allocative efficiency. It explains the distinction between allocative efficiency and allocative inefficiency and provides economic case study evidence, as well as different types of measures of allocative efficiency.
Technique Overview
Allocative Efficiency Definition
Efficiency is the property of a resource allocation of maximising the total surplus received by all members of society. The total surplus in a market is the total value received by the consumers minus the cost to the sellers. Allocative Efficiency is where the resources allocation maximises this surplus (Mankiw, 2009).
Allocative Efficiency Description *
* The full technique overview will be available soon. Contact us to register your interest in our business management platform, and learn all about Allocative Efficiency.
Business Evidence
Strengths, weaknesses and examples of Allocative Efficiency *
* The business evidence section is for premium members only. Please contact us about accessing the Business Evidence.
Business Application
Implementation, success factors and measures of Allocative Efficiency *
* The business application section is for premium members only. Please contact us about accessing the Business application.
Professional Tools
Allocative Efficiency videos and downloads *
* The professional tools section is for premium members only. Please contact us about accessing the professional tools.
Further Reading
Allocative Efficiency web and print resources *
Allocative Efficiency references (4 of up to 20) *
- Anderton, A. (2006) Economics (3rd ed.), Longman, London.
- Arnold, J., Nicoletti, G., Scarpetta, S. (2008). Regulation, Allocative Efficiency and Productivity in OECD Countries: Industry and Firm-Level Evidence. Economics Department Working Papers, No. 616, OECD Publishing.
- Beardshaw, J. (2001) Economics: a student's guide. Pearson Education.
- Elliot, H. (2009) Most Fuel-Efficient Cars For The Buck. Forbes, Mar 30. Available at:
* The further reading section is for premium members only. Please contact us about accessing the further reading.
Learn more about KnowledgeBrief Manage and how you can equip yourself with the knowledge to succeed on Allocative Efficiency and hundreds of other essential business management techniques